The Average Number of Times Each Dollar Is Used Per

question 60

Multiple Choice

The average number of times each dollar is used per year to buy goods and services in the economy is called the

• A)velocity of circulation.
• B)equation of exchange.
• C)law of demand.
• D)law of diminishing returns.
• E)quantity theory of money.

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Definitions:

Quantity Supplied

The amount of a commodity that producers are willing and able to sell at a particular price over a given period of time.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price point in a certain period.

Decrease

A reduction in quantity, size, or intensity of a particular entity or activity.

Increase

An upward movement in quantity, price, or value.