The "velocity of circulation" refers to the
A) ratio between the quantity of money and the price level.
B) speed with which dollars circulate in the economy as people use dollars to buy goods and services.
C) number of times a dollar is deposited and withdrawn from a bank account.
D) speed with which the Fed increases or decreases the quantity of money.
E) speed with which the nominal interest rate changes when the inflation rate changes.
Correct Answer:
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Q131: Q132: When real GDP equals potential GDP, the Q133: The equation of exchange shows that Q134: Suppose the nominal interest rate is 4 Q135: In the long run, an increase in
A) P
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