The Velocity of Circulation Is

question 478

Multiple Choice

The velocity of circulation is

• A) the relationship between income and spending.
• B) the relationship between increases in income and investment.
• C) the ratio of currency to demand deposits.
• D) the average number of times per year a dollar is spent on goods and services in GDP.

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Definitions:

Vacationing Abroad

The act of traveling to another country for leisure, exploration, or relaxation purposes.

Consumer Surplus

The disparity between the total sum consumers are ready to pay for a product or service and the actual amount they end up spending.

Producer Surplus

The difference between what producers are willing to accept for a good or service and the actual price they receive, reflecting extra benefit or profit.

Tax

Compulsory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.