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

Question

Quizplus · Accepted Answer

Velocity is defined as the number of times per year that a dollar is spent on final goods and services. It reflects the rate at which economic transactions take place, and the intensity with which money circulates through the economy. Choice A refers to government spending, Choice B is a vague statement about economic activity, and Choice D refers to the multiplier effect, which is the process by which an initial injection of spending leads to additional rounds of spending as the income generated by the initial spending is re-spent by others. While velocity is related to the multiplier effect, it is not the same thing.

Which of the Following Statements About Velocity Is the Most