Which of the following would cause an increase in the velocity of money?
A) an increase in the use of credit cards
B) an increase in the money supply
C) an increase in demand for money
D) a decrease in interest rates

Question

Which of the following would cause an increase in the velocity of money?  
A) an increase in the use of credit cards 
B) an increase in the money supply 
C) an increase in demand for money 
D) a decrease in interest rates

Quizplus · Accepted Answer

When people use credit cards, they tend to spend more money and more quickly, thus increasing the velocity of money.

Which of the Following Would Cause an Increase in the Velocity