The income velocity of money:
A) is defined in the identity MV = PY.
B) is defined in the identity MV = PT.
C) is the same thing as the transactions velocity of money.
D) is the same as the number of times a dollar bill changes hands.

Question

Quizplus · Accepted Answer

The income velocity of money is defined in the identity MV = PY, where M is the money supply, V is the velocity, P is the price level, and Y is the real GDP.

The Income Velocity of Money