The velocity of money ________.
A)represents the average number of times a dollar turns over through the year
B)provides the link between the money supply and nominal income
C)times the money supply should equal total income,according to the equation of exchange
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

The velocity of money represents the average number of times a dollar is spent in a year, and it provides the link between the money supply and nominal income. According to the equation of exchange, the velocity of money times the money supply should equal total income. So, all options are correct, making option D the best choice.

The Velocity of Money ________