QuestionJune 25, 2025

If nominal GDP is 1800 and the money supply is 450, then what is velocity? 4 22 25 4.5

If nominal GDP is 1800 and the money supply is 450, then what is velocity? 4 22 25 4.5
If nominal GDP is 1800 and the money supply is 450, then what is velocity?
4
22
25
4.5

Solution
4.7(169 votes)

Answer

4 Explanation 1. Identify the formula for velocity Velocity (V) is calculated using the formula: **V = \frac{\text{Nominal GDP}}{\text{Money Supply}}**. 2. Substitute values into the formula Substitute Nominal GDP = 1800 and Money Supply = 450 into the formula: V = \frac{1800}{450}. 3. Calculate the result Perform the division: V = 4.

Explanation

1. Identify the formula for velocity<br /> Velocity ($V$) is calculated using the formula: **$V = \frac{\text{Nominal GDP}}{\text{Money Supply}}$**.<br />2. Substitute values into the formula<br /> Substitute Nominal GDP = 1800 and Money Supply = 450 into the formula: $V = \frac{1800}{450}$.<br />3. Calculate the result<br /> Perform the division: $V = 4$.
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