The velocity of money is
A)highly unstable.
B)impossible to measure.
C)the rate at which money loses its value.
D)the rate at which inflation rises.
E)the rate at which money changes hands.

Question

Quizplus · Accepted Answer

The velocity of money is the rate at which money changes hands, or the number of times that a unit of currency is spent in a given period of time. It is an important indicator of the economy's overall health, as it influences the level of economic activity and inflation. While the velocity of money can fluctuate, it is not necessarily highly unstable or impossible to measure. It is also not the same as the rate at which money loses its value or the rate at which inflation rises.

The Velocity of Money Is