The average number of times that a unit of currency is spent on final goods and services in a year is called the:
A) variation in the interest rate.
B) price level in the economy.
C) velocity of money.
D) value of the annual output.

Question

Quizplus · Accepted Answer

The velocity of money refers to the frequency at which one unit of currency is used to purchase domestically- produced goods and services within a given time period. It is a measure of the rate at which money circulates in the economy.

The Average Number of Times That a Unit of Currency