"The velocity of circulation is the average speed with which money is loaned to businesses and households." Is the previous statement correct or incorrect?
What will be an ideal response?
The statement is incorrect. The velocity of circulation is the average number of times in a year that each dollar of money is used to purchase final goods and services.
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An economic ________ is a simplified version of some aspect of economic life used to analyze an economic issue
A) variable B) model C) market D) trade-off
the government created a new tax credit to encourage businesses to build more factories
What will be an ideal response?
In economics, what term refers to using fewer resources than a competitor?
a. absolute advantage b. comparative advantage c. market efficiency d. negative incentive
If the money supply of a country doubles, a likely result is ________.
enough demand to give everyone a job inflation a trade surplus a doubling of real GDP