Asked by Jacob Burch on Jun 19, 2024
Verified
The average number of times each dollar is used per year to buy goods and services in the economy is called the
A) velocity of circulation.
B) equation of exchange.
C) law of demand.
D) law of diminishing returns.
E) quantity theory of money.
Velocity of Circulation
The rate at which money changes hands in an economy, illustrating the activity level of economic transactions.
- Acquire knowledge on how money supply, its circulation speed, price points, and production output interrelate.
Verified Answer
BK
basheer kananJun 20, 2024
Final Answer :
A
Explanation :
The given definition matches the concept of velocity of circulation.
Learning Objectives
- Acquire knowledge on how money supply, its circulation speed, price points, and production output interrelate.