Answer:
a. the price level equals 4, the money supply equals 5,000, and output equals 20,000.
Explanation:
Velocity = (price × output) / money supply
A. (4 × 20,000) / 5000 = 16
B. (4 × 5000) / 20000 = 1
C. (2 × 20,000) / 5000 = 8
D. (2 × 5000) / 10000 = 0.5
The highest velocity is option A.
I hope my answer helps you
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I think the correct answer from the choices listed above is option D. The type of income that Zoe has would be earned income and capital gains income. Hope this answers the question.
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