The velocity of money is Group of answer choices how quickly money can be printed. how quickly individuals spend their incomes. the average number of times a dollar is used in a transaction per year. how many times individuals are paid per year. None of these answers is correct.
Added by Eduardo C.
Step 1
It is a measure of how many times a unit of currency is used in transactions over a specific period of time. Show more…
Show all steps
Your feedback will help us improve your experience
Sanchit Jain and 88 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
The velocity of money is calculated as P/M. It indicates the number of times per year a currency unit is used as a medium of exchange. It does not indicate the speed with which the Canadian Treasury can mint new currency. The velocity of money is not equal to 2k in the Cambridge equation.
Sanchit J.
In periods of hyperinflation we would expect Group of answer choices a. the ratio of money to income to be high b. velocity to be high c. both a and b d. none of the above
Akash M.
Jenny W.
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
Watch the video solution with this free unlock.
EMAIL
PASSWORD