What Is the Effect on Velocity If Payments Are Made

question 163

Multiple Choice

What is the effect on velocity if payments are made more often?

• A)Velocity will decrease.
• B)Velocity will increase.
• C)Velocity will remain constant.
• D)Velocity is unrelated to payments.

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Definitions:

Profit-maximizing

The method of modifying manufacturing and selling tactics to obtain the maximum profit achievable.

Marginal Revenue

The extra revenue earned by selling an additional unit of a product or service.

Marginal Cost

Refers to the increase in total production cost that comes from making or producing one additional unit.

Increased By

A mathematical operation indicating that a certain value should be added to another value, resulting in a larger amount.