The velocity of money is defined as
A)the time it takes the average worker to get to the bank with his/her paycheck
B)the time it takes banks to clear checks
C)the average number of times per year each dollar is used to purchase final goods and services
D)M $\times$ P ÷ Y
E)the average number of times per year each dollar is spent for goods,payrolls,Social Security payments,etc.

Question

Quizplus · Accepted Answer

The velocity of money is the average number of times per year each dollar is used to purchase final goods and services, which is defined as MV = PQ where M is the money supply, V is the velocity of money, P is the price level, and Q is real output.

The Velocity of Money Is Defined as A)the Time It ×\times×

The Velocity of Money Is Defined as
A)the Time It $\times$