If on average, a dollar is spent 4 times each year to purchase real output, the velocity of money is:

Name: If on average, a dollar is spent 4 times each year to purchase real output, the velocity of money is:
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Question

Quizplus · Accepted Answer

The velocity of money is defined as the number of times the average dollar is spent in a year. In this case, if a dollar is spent 4 times each year to purchase real output, then the velocity of money is 4. Therefore, the correct answer is B - Four.

If on Average, a Dollar Is Spent 4 Times Each