What is velocity of money?
A) It is the number of times households convert bonds to money to facilitate economic transactions.
B) It is the rate at which money supply is spent to obtain the goods and services that make up GDP during a particular time period.
C) It is the rate at which money supply can grow while keeping the price level stable.
D) It is the number of times the money supply is spent to obtain the goods and services that make up GDP during a particular time period.

Question

Quizplus · Accepted Answer

The velocity of money is defined as the number of times the money supply is spent to purchase goods and services that constitute GDP in a given time period.

What Is Velocity of Money