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Transactions Velocity

Question 1

Multiple Choice

Transactions velocity


A) was rejected by Irving Fisher as the correct definition of velocity in the quantity theory of money demand.
B) is much smaller than the value of velocity obtained from dividing GDP by the money stock.
C) is much smaller than the value of velocity obtained from dividing the money stock by GDP.
D) is much larger than the value of velocity obtained from dividing GDP by the money stock.

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