One of the reasons the velocity of M1 has risen over the long-run is
A) increased economic uncertainty.
B) growth in the money supply.
C) growth in personal income.
D) expanding use of credit cards.

Question

Quizplus · Accepted Answer

The velocity of M1, which refers to how quickly money is circulated in the economy, has increased over the long run partly due to the expanding use of credit cards. Credit cards make transactions quicker and more efficient, thus increasing the speed at which money changes hands.

One of the Reasons the Velocity of M1 Has Risen