The Income Velocity of Money Is Defined as Nominal GDP

question 13

Essay

The income velocity of money is defined as nominal GDP divided by the money supply.In the first quarter of 2013 the U.S.nominal GDP was estimated to be around $16 trillion annually and M2 was $10460.3 billion.Would the income velocity of M2 be equal to 1; < 1; or > 1? Explain.