Which of the Following Will Tend to Increase Velocity

question 18

Multiple Choice

Which of the following will tend to increase velocity?

• A)A decrease in the number of payments
• B)A decrease in inflation
• C)An increase in interest rates
• D)An increase in the money supply
• E)All of these responses are correct.

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Definitions:

Economic Decisions

Choices made by individuals, firms, or governments regarding the allocation of resources to satisfy needs and wants.

Marginal Decision Maker

is an individual or entity that makes choices based on the additional cost or benefit of the next unit of consumption or production.

Comparative Advantage

The ability of an entity to produce a good or offer a service at a lower opportunity cost than others, leading to more efficient trade.

Opportunity Cost

The value of the next best alternative forgone as a result of making a decision to pursue a certain action.