Rising velocity means that people want to hold ________ nominal money per dollar of nominal GDP,which ________ the inflationary tendency of an increase in the money supply as one way of re-equating the demand and supply of money.

Question

Quizplus · Accepted Answer

Rising velocity means that people are holding less nominal money per dollar of nominal GDP, which weakens the inflationary tendency of an increase in the money supply. This is because people are spending the money faster, increasing demand and helping to re-equating the demand and supply of money.

Rising Velocity Means That People Want to Hold ________ Nominal