To determine the velocity of money, you would need to know
A) nominal GDP and real GDP.
B) the money supply and the price level.
C) nominal GDP and the money supply.
D) nominal GDP and the interest rate.

Question

Quizplus · Accepted Answer

The velocity of money is the number of times a unit of currency is spent in a given time period. It can be calculated by dividing nominal GDP by the money supply. Therefore, the two variables needed to determine the velocity of money are nominal GDP and the money supply.

To Determine the Velocity of Money, You Would Need to Know