What is the effect on velocity if payments are made more often?

A. Velocity will decrease.
B. Velocity will increase.
C. Velocity will remain constant.
D. Velocity is unrelated to payments.

Answer: B

Economics

You might also like to view...

Another name for a consol is a ________ because it is a bond with no maturity date. The owner receives fixed coupon payments forever

A) perpetuity B) discount bond C) municipality D) high-yield bond

Economics

When economists and policymakers refer to the Fed's dual mandate, they are referring to:

A) price and exchange rate stability. B) price stability and maximum employment. C) moderate long-term interest rates and maximum employment. D) price stability and moderate long-term interest rates.

Economics