Which of the following would cause an increase in the velocity of money?
A)An increase in the use of credit cards
B)An increase in the money supply
C)An increase in the demand for money
D)A decrease in the rate of interest
E)A decrease in nominal GDP and a constant money supply

Question

Quizplus · Accepted Answer

An increase in the use of credit cards would increase the velocity of money as people are more likely to use credit cards to make purchases and payments, leading to a faster circulation of money.

Which of the Following Would Cause an Increase in the Velocity