Which Statement Best Defines the Velocity of Money

question 134

Multiple Choice

Which statement best defines the velocity of money?

• A) It is the rate at which the central bank puts money into the economy.
• B) It is the long-term growth rate of the money supply.
• C) It is the money supply divided by nominal GDP.
• D) It is the average number of times per year a dollar is spent.

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Definitions:

Holmes And Rahe

Psychologists who developed a scale to measure stress based on major life events and their impact on an individual's health.

Type B Personality

A personality type characterized by comparatively lower levels of stress, patience, relaxed state, and a laid-back attitude, in contrast to the more stress-prone Type A personality.

Competitiveness

The desire to win or excel in comparison to others, often driving individuals or groups to perform their best.

Hostility

An emotion expressed through anger, aggression, or opposition towards others or oneself.