What Is Velocity of Money

question 172

Multiple Choice

What is velocity of money?

• A) It is the number of times households convert bonds to money to facilitate economic transactions.
• B) It is the rate at which money supply is spent to obtain the goods and services that make up GDP during a particular time period.
• C) It is the rate at which money supply can grow while keeping the price level stable.
• D) It is the number of times the money supply is spent to obtain the goods and services that make up GDP during a particular time period.

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