What Does Velocity Measure

question 48

Multiple Choice

What does velocity measure?  

• A) the average length of time that people hold wealth 
• B) how quickly aggregate spending will increase for a given decline in money demand 
• C) how quickly inflation will rise for a given increase in the money supply 
• D) how quickly money changes hands

---

Definitions:

Achieving A Target Return

In finance and business, achieving a target return refers to the goal of obtaining a specific level of profit or return on investment over a given period.

Pricing Strategy

Pricing Strategy encompasses the methods and logic a company uses to set prices for its products or services, influencing demand, profitability, and market positioning.

Profit Objectives

Financial goals set by a company seeking to achieve a specific amount of profit over a certain period.

Target Return

A pricing strategy that sets the price point based on a predetermined return on investment or desired profit margin.