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• A)average number of times a dollar is deposited and withdrawn from a bank account.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.

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Definitions:

Quality and Quantity

Aspects of goods or services, with quality referring to the degree of excellence and quantity to the measure or volume.

Custom Machine Shops

Businesses specializing in the custom design and manufacture of specialized parts and machinery tailored to specific customer requirements.

Negotiations

The process of discussing and arriving at a mutual agreement between parties with differing interests.