The average number of times per year each dollar is used to purchase final goods and services is called _____
A) nominal gross domestic product.
B) real gross domestic product.
C) the velocity of money.
D) the quantity of money.
E) the supply of money.

Question

Quizplus · Accepted Answer

The average number of times per year each dollar is used to purchase final goods and services is called the velocity of money. This is a measure of how quickly money is circulating in the economy and is important in determining the overall level of economic activity. The other options (A, B, D, E) are all related to different aspects of the money supply or the economy, but they do not specifically refer to the velocity of money.

The Average Number of Times Per Year Each Dollar Is