The Velocity of Money Is Defined as

question 40

Multiple Choice

The velocity of money is defined as

• A)real GDP divided by the money supply.
• B)nominal GDP divided by the money supply.
• C)real GDP times the money supply.
• D)nominal GDP times the money supply.

---

Definitions:

Inferior Good

A type of good whose demand decreases when consumers' income increases, opposite to normal goods.

Demand Elastic

A measure of how sensitive the quantity demanded of a good or service is to a change in its price.

Supply Inelastic

A situation where the quantity supplied of a good is not significantly affected by changes in its price.

Cross Elasticity

A gauge for the reaction in the demand for one item when there's a price alteration in another item.