19. If M stands for the money stock, P for the price level, and Y for real GDP, then velocity, V, equals:?

Question

19. If M stands for the money stock, P for the price level, and Y for real GDP, then velocity, V, equals:

A. (P x Y) / M

B. (P x M) / Y

C. (M x Y) / P

D. (M x P) / Y

E. (Y x M) / P

20. Velocity is determined by:

A. the Federal Reserve.

B. the size of the government budget deficit.

C. average labor productivity times the population growth rate.

D. payments methods and technology.

E. open market operations.

Answer 1

19. If M stands for the money stock, P for the price level, and Y for real GDP, then velocity, V, equals:

correct answer:

A. (P x Y) / M

20. Velocity is determined by:

correct answer:

D. payments methods and technology.

Answer 2

A. (P x Y) / M

D. payments methods and technology.