In August 2001, M1 was about $1.14 trillion. The U.S. GDP for the preceding year was about $10.2 trillion. Given these figures, about how much was M1 velocity?

Name: In August 2001, M1 was about $1.14 trillion. The U.S. GDP for the preceding year was about $10.2 trillion. Given these figures, about how much was M1 velocity?
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Question

Quizplus · Accepted Answer

M1 velocity can be calculated as GDP/M1. Therefore, M1 velocity = 10.2/1.14 = 9. This information is enough to determine the answer.

In August 2001, M1 Was About $1