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If the Velocity of Money Is 7, This Means That

Question 193

Multiple Choice

If the velocity of money is 7, this means that the:


A) average dollar is spent seven times a year.
B) dollar loses about 7% of its value a year due to inflation.
C) average dollar is spent once every 7 days.
D) money supply, M1, is growing at a rate of 7% a year.

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