Velocity measures
A)the average length of time that people hold wealth
B)how fast aggregate spending will increase for a given decline in money demand
C)how fast inflation will rise for a given increase in the money supply
D)how quickly money changes hands
E)how quickly banks can create money

Question

Quizplus · Accepted Answer

Velocity measures how quickly money changes hands, or how frequently it is used in transactions within the economy. It is calculated as the ratio of GDP to the money supply.

Velocity Measures