Other Things the Same,an Increase in Velocity Means That

question 206

Multiple Choice

Other things the same,an increase in velocity means that

• A)transactions per dollar increase so the price level rises.
• B)transactions per dollar increase so the price level falls.
• C)transactions per dollar decrease so the price level rises.
• D)transactions per dollar decrease so the price level falls.

---

Definitions:

Shareholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities, representing the ownership interest of shareholders.

Retained Earnings

The portion of a company's profits not distributed as dividends but reinvested in the business or kept as a reserve.

Common Shares

Units of ownership in a company that grant shareholders rights to vote on company matters and receive dividends, representing equity in the corporation.

Gross Profit

The income a company retains after subtracting the expenses related to the production and sale of its goods, or the expenses incurred from providing its services.