The "velocity" of money is
A)the ratio of real GDP to the real money supply.
B)the real money supply divided by the real GDP.
C)the money supply divided by the price level.
D)the money supply multiplied by the price level.

Question

Quizplus · Accepted Answer

The "velocity" of money is the rate at which money is exchanged in an economy. It is calculated as the ratio of real GDP to the real money supply, as it shows the speed at which money is changing hands in the economy to produce goods and services.

The "Velocity" of Money Is