Which of the following is a likely causative factor in the movement of M1 velocity during the 1980s?

Question

Quizplus · Accepted Answer

Movements in interest rates can have a significant impact on the velocity of money, as changes in rates can affect the cost of borrowing and the willingness of individuals and businesses to spend or save. This can lead to changes in the velocity of money, which measures the frequency with which money is exchanged in the economy.

Which of the Following Is a Likely Causative Factor in the Movement