Suppose nominal GDP equals units and money supply equals units. Based on the quantity theory of money, the velocity of money equals
Tap an option to check your answer.
1 mark, −0.333MacroeconomicsDemand for money and monetary theoriesThe quantity theory of money and velocityEasyabout 1 min
IIT JAM 2024 Question 8: Demand for money and monetary theories
Answer and worked solution
Checking your account…
Plain-text version
Suppose nominal GDP equals 1,000 units and money supply equals 250 units. Based on the quantity theory of money, the velocity of money equals (A) 40 (B) 4 (C) 2,50,000 (D) 500
Demand for money and monetary theories has come up 82 times in 7 exams since 2005.
What this question tests
This question is on The quantity theory of money and velocity, part of Demand for money and monetary theories in Macroeconomics.
The link between the money stock, prices and output through velocity.
TestStop has 30 past-paper questions on this subtopic; the nearest in year are below.
Similar questions from other papers
- Given below are two statements: Assertion A: The nominal interest rate can be misleading guide to cost of borrowing. Reason R: The real interest rate is nominal rate of…
- According to the theory of Keynesian Liquidity Preference, demand for money
- In the context of Keynesian money demand, ceteris paribus, the real demand for money increases when
- Which of the following proposition of demand for money in Keynesian theory has a distinct break with classical theory of demand for money?
- The statement that "currency held in the hand yields no income" is given by
Question from the IIT JAM 2024 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.