The velocity of money ________ be affected by how frequently workers are paid, and ________ be affected by the development of new financial instruments, such as interest-bearing checking accounts.
A) can; can
B) can; cannot
C) cannot; can
D) cannot; cannot

Question

Quizplus · Accepted Answer

The velocity of money can indeed be affected by how frequently workers are paid, as more frequent payments may increase the speed at which money circulates in the economy. Additionally, the development of new financial instruments, like interest-bearing checking accounts, can also affect the velocity of money by changing how people choose to hold and spend their money.

The Velocity of Money ________ Be Affected by How Frequently