In Which Case Is Velocity the Highest

question 94

Multiple Choice

In which case is velocity the highest?

• A)the price level equals 4,the money supply equals 5,000,and output equals 20,000.
• B)the price level equals 4,the money supply equals 20,000 and output equals 5,000.
• C)the price level equals 2,the money supply equals 5,000,and output equals 20,000.
• D)the price level equals 2,the money supply equals 20,000 and output equals 5,000.

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Definitions:

Transaction Date

The date on which a trade or a financial transaction is completed or settled.

Debit

An accounting entry that increases asset or expense accounts, or decreases liability, equity, or revenue accounts.

Credit

Credit in finance represents a contractual agreement in which a borrower receives something of value now and agrees to repay the lender at a later date, often with interest.

Transaction

A financial event that changes the balance of two or more accounts.