If M = 12,000, P = 3, and Y =

question 393

Multiple Choice

If M = 12,000, P = 3, and Y = 32,000, then velocity =

• A) 1.125. Velocity will rise if money changes hands more frequently.
• B) 1.125. Velocity will rise if money changes hands less frequently.
• C) 8. Velocity will rise if money changes hands more frequently.
• D) 8. Velocity will rise if money changes hands less frequently.

---

Definitions:

Shareholders' Equity

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

Dividends Declared

Dividends declared are profits a company announces it will distribute to its shareholders, indicating when and how much will be paid out.

Liabilities

Financial obligations or debts that a company owes to others, which must be settled over time through the transfer of economic benefits.

Shareholders' Equity

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