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. the ratio of money supply to the average price level in an economy.
e. the average number of times per year each dollar is spent for goods, payrolls, Social Security payments, etc.
c
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Behavior designed to take account of the reactions of one’s rivals to one’s own behavior.
Which of the following statements is correct?
A) Arc elasticity of demand is the same as the slope of the demand curve. B) Arc elasticity of demand only applies to a nonlinear demand curve. C) Point elasticity of demand is measured at each point along a demand curve. D) Point elasticity of demand is measured between two adjacent points on a demand curve.