Which of the Following Would Cause an Increase in the Velocity

question 193

Multiple Choice

Which of the following would cause an increase in the velocity of money?

• A) an increase in the use of credit cards
• B) an increase in the money supply
• C) an increase in the demand for money
• D) a decrease in the rate of interest
• E) a decrease in nominal GDP and a constant money supply

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Definitions:

Assembly Department

An area in a manufacturing plant where parts are put together to create finished goods.

Conversion Costs

These are the costs required to convert raw materials into finished products, comprising labor and overhead expenses.

Materials Costs

Expenses incurred for materials that are directly associated with manufacturing a product.

Equivalent Units

A concept used in process costing to convert partially completed units into a number of equivalent fully completed units.