In the equation of exchange,the average number of times a dollar is used to purchase a final good or service is the __________ of money.

Question

Quizplus · Accepted Answer

The velocity of money is the average number of times a dollar is used to purchase a final good or service. This is a key component of the equation of exchange, along with the quantity of money, the price level, and the level of real output. The equation of exchange states that the quantity of money multiplied by the velocity of money equals the price level multiplied by the level of real output. Therefore, the correct answer is C) velocity.

In the Equation of Exchange,the Average Number of Times a Dollar