Suppose the money supply in Country X is $44,000 and the nominal GDP is $88,000. Calculate the velocity of money. Round your answer to the nearest hundredth.

Question

asked Jan 2, 2021 21.7k views

1 Answer

Pereira · Answer 1 · 2021-01-07T23:30:26+0000

Answer:

Velocity of money = 2 unit

Step-by-step explanation:

Given:

Supply in country X = $44,000

Nominal GDP = $88,000

Find:

Velocity of money

Computation:

Velocity of money = Nominal GDP / Money supply in country

Velocity of money = $88,000 / $44,000

Velocity of money = 2 unit