More recently, the velocity of money was:
A) higher during the housing boom and lower during the recession that followed.
B) lower during the housing boom and higher during the recession that followed.
C) consistently higher than the historical trend since the mid-1980s.
D) consistently lower than the historical trend since the early 1990s.

Question

Quizplus · Accepted Answer

The velocity of money tends to increase during economic booms, like the housing boom, as people and businesses spend more rapidly. Conversely, it tends to decrease during recessions when spending slows down.

More Recently, the Velocity of Money Was