Which of the Following Would Cause an Increase in the Velocity

question 185

Multiple Choice

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

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

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Definitions:

Department Stores

Large retail establishments that offer a wide variety of goods divided into departments for shoppers.

Inferior Goods

Products whose demand decreases as consumer income rises, opposite to what is observed with normal goods.

Substantial Performance

A legal concept indicating that a party has fulfilled enough of its contractual obligations to warrant payment, even if some minor specifications are not met.

Doctrine

A doctrine is a set of principles or beliefs, especially in legal contexts, establishing a particular rule of law or policy guidance.