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If Nominal GDP Is $10,400 Billion, M1 Is $1,300 Billion

Question 16

Multiple Choice

If nominal GDP is $10,400 billion, M1 is $1,300 billion and M2 is $5,200 billion, then


A) the income velocity of M1 is about four times as high as the income velocity of M2
B) the income velocity of M1 is 1/4 of the income velocity of M2
C) the income velocity of M2 must be 1/2
D) the price level must be 2.0
E) none of the above

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