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

Question

Quizplus · Accepted Answer

Increased use of credit cards can lead to more transactions being conducted without the need for cash, effectively increasing the velocity of money as the same amount of money circulates more rapidly through the economy.

Which of the Following Would Cause an Increase in the Velocity