Other things the same,an increase in velocity means that
A)transactions per dollar increase so the price level rises.
B)transactions per dollar increase so the price level falls.
C)transactions per dollar decrease so the price level rises.
D)transactions per dollar decrease so the price level falls.

Question

Quizplus · Accepted Answer

An increase in velocity means that each unit of money is being spent more frequently, leading to an increase in the number of transactions per dollar. This increased demand for goods and services will lead to an increase in prices, as suppliers may raise their prices in response to increased demand.

Other Things the Same,an Increase in Velocity Means That