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Which of the Following Statements About the Velocity of Money

Question 21

Multiple Choice

Which of the following statements about the velocity of money is the most accurate?


A) It is inversely related to the rate of interest.
B) It is the rate at which the Consumer Price Index rises.
C) It is established by the Bank of Canada and, if needed, is adjusted four times a year.
D) It is the average number of times that a dollar is used in purchasing goods and services.

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