If the velocity of money is increasing, but the money supply is not, it is likely the economy is experiencing:
A)a trade deficit.
B)deflation.
C)growth.
D)inflation.

Question

Quizplus · Accepted Answer

When the velocity of money increases without an increase in the money supply, it typically means that each unit of currency is being used more frequently to purchase goods and services. This increased demand can lead to higher prices, or inflation, as the same amount of money is chasing after more goods and services.

If the Velocity of Money Is Increasing, but the Money