The Velocity of Circulation Is

question 124

Multiple Choice

The velocity of circulation is

• A)the average number of times a dollar of money is used annually to buy the goods and services that make up GDP.
• B)the average number of times that a dollar of money is used annually to buy the goods and services that make up consumption expenditure.
• C)calculated as Y ÷ M.
• D)constantly increasing over time.
• E)equal to zero in the long run.

---

Definitions:

Monthly Interest Rate

The interest rate charged or paid on a loan or savings account calculated on a monthly basis.

Default Rate

The percentage of borrowers who fail to repay their loans or meet contractual obligations.

Monthly Interest Rate

The percentage of an amount of money which is charged or paid as interest for one month.

Restocking Costs

The expenses associated with replenishing inventory or goods in a business after sales or usage.