The average number of times a dollar is spent on final goods and services during a year is
A) the velocity of money.
B) the money supply.
C) the consumption rate.
D) the 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 referred to as the velocity of money. It is a key concept in the quantity theory of money, which explains the relationship between the money supply and price level. The faster the velocity of money, the greater the economy's production and growth potential.

The Average Number of Times a Dollar Is Spent on Final