The number of times per year,on average,that a dollar is used to purchase final goods and services is the
A)Business cycle.
B)Multiplier.
C)Velocity of money.

Question

Quizplus · Accepted Answer

The number of times per year that a dollar is used to purchase final goods and services is known as the velocity of money. This concept is important in measuring the overall level of economic activity and the effectiveness of monetary policy. The velocity of money is calculated as the ratio of nominal GDP to the money supply.

The Number of Times Per Year,on Average,that a Dollar Is