The velocity of money is defined as
A)the average number of times each dollar is used to purchase goods and services.
B) .
C)the total number of times each dollar is used to purchase goods and services.
D)P × Y.

Question

The velocity of money is defined as
A)the average number of times each dollar is used to purchase goods and services. 
B) . 
C)the total number of times each dollar is used to purchase goods and services. 
D)P × Y.

Quizplus · Accepted Answer

The velocity of money is defined as the average number of times each dollar is used to purchase goods and services. This is determined by dividing the nominal Gross Domestic Product (GDP) by the money supply.

The Velocity of Money Is Defined as