The definition of the velocity of money is
a. the money supply multiplied by prices divided by transactions.
b. the number of times a unit of currency changes hands over a perid.
c. money supply times prices divided by transactions.
d. the fraction of total income held as money.
B
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What is regulatory capture?
A) It is a situation in which a firm being regulated successfully influences the regulatory agency's actions to benefit the interests of the firm, rather than the public interest. B) It is a situation in which a regulatory agency uses its authority to force actions that are not favored by the regulated firms but are in the public's interest. C) It is a situation in which a policymaker seeks to improve his election prospects by aligning himself with a powerful special interest group which will finance his political campaign. D) It is the exchange of political support between a regulatory agency and the regulated firm resulting in both parties capturing economic rents.
Compared to the United States, Japan's experience with monetary targeting during the 1978––1987 period performed
A) better with regard to the inflation rate and output fluctuations. B) worse with regard to the inflation rate and output fluctuations. C) better with regard to the inflation rate, but worse with regard to output fluctuations. D) worse with regard to the inflation rate, but better with regard to output fluctuations.