In the late 1970s and early 1980s, the velocity of money increased significantly.The main reason(s) for the increase was:

Question

Quizplus · Accepted Answer

The introduction of stock and bond mutual funds with draft writing privileges, along with high nominal interest rates, led to an increase in the velocity of money. Mutual funds allowed investors to easily access and withdraw their money, while high nominal interest rates made holding cash less attractive, prompting individuals to invest and spend money more quickly, leading to an increase in the velocity of money.

In the Late 1970s and Early 1980s, the Velocity of Money