According to the quantity theory of money, a decision on the part of all business firms currently paying employees on a monthly basis to begin paying on a weekly basis would be expected to

Question

Quizplus · Accepted Answer

The quantity theory of money suggests that the velocity of money is related to the frequency of transactions. If businesses start paying employees on a weekly basis instead of monthly, the money circulates more frequently, increasing the velocity of money. This could lead to an increase in nominal GDP if it stimulates more economic activity due to the increased circulation of money.

According to the Quantity Theory of Money, a Decision on the Part