The average number of times a dollar is spent on final goods and services during a year is the:
A) velocity of money.
B) money supply.
C) consumption rate.
D) quantity theory of money.

Question

Quizplus · Accepted Answer

The average number of times a dollar is spent on final goods and services during a year is the velocity of money. This is a key component of the equation of exchange in the quantity theory of money, which relates the money supply, velocity of money, price level, and real output.

The Average Number of Times a Dollar Is Spent on Final