The income velocity of money can be calculated using the following formula
A)V = M/(PY)
B)V = (MY)/P
C)V = (PY)/M
D)V = MY
E)none of the above

Name: The income velocity of money can be calculated using the following formula A)V = M/(PY) B)V = (MY)/P C)V = (PY)/M D)V = MY E)none of the above
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Question

Quizplus · Accepted Answer

The income velocity of money can be calculated by dividing nominal GDP (PY) by the money supply (M), so the correct formula is V = (PY)/M.

The Income Velocity of Money Can Be Calculated Using the Following