Which of the Following Statements Is True About Velocity

question 30

Multiple Choice

Which of the following statements is true about velocity?

• A) In the short run, velocity varies but in the long run, velocity is relatively constant.
• B) In the short run, velocity is relatively constant but in the long run, velocity varies.
• C) Velocity is relatively constant in the short run and in the long run.
• D) Velocity fluctuates with fluctuations in economic activity and changes in the growth rate of money supply.

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Definitions:

Price Floor

A government-imposed minimum price charged for a good or service, aimed at preventing prices from falling too low.

Legal Price

The price of a good or service as determined or influenced by law or regulation, often in the context of price controls or minimum wage laws.

Dynamic Pricing

Dynamic pricing is a strategy where businesses set flexible prices for products or services based on current market demand.

Equilibrium

A condition where the supply and demand in the market are equal, leading to steady prices.