The Velocity of Money Is the

question 115

Multiple Choice

The velocity of money is the

• A) rate at which the price index for consumer goods rises.
• B) multiple by which an increase in government expenditures will cause output to expand.
• C) average number of times a dollar is used to buy goods and services included in GDP.
• D) number of times a dollar is taken out of the country during a year.

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Definitions:

Reagan Presidency

The period of American leadership under Ronald Reagan, the 40th President of the United States, from 1981 to 1989, noted for its conservative policies.

Great Society

A set of domestic programs in the United States, launched by President Lyndon B. Johnson, aimed at eliminating poverty and racial injustice.

Privatization

The process of transferring ownership of a business, enterprise, agency, or public service from the government to private individuals or organizations.

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Changes or improvements to policies or practices that are guided by the principles of free market competition.