The relationship between the velocity of money and interest rates is:

Name: The relationship between the velocity of money and interest rates is:
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Question

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The relationship between velocity of money and interest rates is generally positive, meaning that an increase in interest rates leads to an increase in the velocity of money. However, this relationship is not always stable as changes in other economic factors such as inflation or economic growth can also affect the velocity of money.

The Relationship Between the Velocity of Money and Interest Rates