The income velocity of money is
A) the time it takes to produce money.
B) the time lag from when the Fed decides to increase the money supply until the effect takes place.
C) the number of times per year a dollar is spent on final goods and services.
D) the time it takes for monetary policy to have an effect on world financial markets.
C
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If the demand for bonds increases, the
a. price and quantity of bonds in existence both increase b. price of bonds increases, but the quantity of bonds in existence decreases c. price of bonds increases, but the quantity of bonds in existence remains unchanged d. interest rate and quantity of bonds in existence both increase e. interest rate increases, but the quantity of bonds in existence remains unchanged
Suppose a professor announces at the beginning of a course that he will give no failing grades because they are too damaging to self-esteem. How does such a policy affect equality and efficiency?
If a person uses money to buy a pair of shoes, money is functioning as
A) a unit of account. B) a store of value. C) a medium of exchange. D) none of the above
Which of the following is most important for the achievement of higher income levels and living standards?
A) production of additional goods and services that people value highly relative to the cost of their production B) an increase in total employment C) restriction of imports that expand employment in the protected industries D) increases in government spending that create jobs