The "Velocity of Circulation" Refers to the

question 129

Multiple Choice

The "velocity of circulation" refers to the

• A)average number of times a dollar is deposited and withdrawn from a bank account.
• B)ratio between the quantity of money and the price level.
• C)average speed with which the nominal interest rate changes when the inflation rate changes.
• D)average number of times in a year each dollar is used to buy goods and services.
• E)average speed with which the Fed increases or decreases the quantity of money.

---

Definitions:

Linguistic-Relativity Hypothesis

The view that language structures the way we view the world.

Cognitive Limits

Boundaries within which cognitive processes such as memory, attention, and perception operate, affecting the efficiency and capacity of information processing.

Intelligence Quotient

A measure of a person's intelligence as indicated by an IQ test, where an average score is usually set at 100.

Summer Vacation

A holiday period during the summer season when schools are closed, and people often travel or rest.