The Velocity of Money Measures the Rate of Circulation of the Money

question 81

Multiple Choice

The velocity of money measures the rate of circulation of the money supply and can be expressed by the following equation (note: GDP = gross domestic product and MS = money supply) :

• A)VM = GDP/MS
• B)VM = MS/GDP
• C)VM = MS x GDP
• D)all of the above
• E)none of the above

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