Which of these is most likely to lower the velocity of money?
A)A commercial innovation that facilitates exchange
B)A low inflation rate
C)A decline in the effectiveness of money as a store of wealth
D)A high inflation rate
E)A weekly pay for workers instead of a monthly pay

Question

Quizplus · Accepted Answer

A low inflation rate is most likely to lower the velocity of money because when inflation is low, people are less inclined to spend their money quickly, leading to a slower circulation of money in the economy.

Which of These Is Most Likely to Lower the Velocity