The velocity of money can be expressed as _____
A) V = P/M
B) V = Y/M
C) V = (P x Y)/M
D) V= (P x M)/Y
E) V = (M x Y)/P

Name: The velocity of money can be expressed as _____ A) V = P/M B) V = Y/M C) V = (P x Y)/M D) V= (P x M)/Y E) V = (M x Y)/P
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Question

Quizplus · Accepted Answer

The velocity of money can be expressed as V = (P x Y)/M, where P is the price level, Y is real GDP, and M is the money supply. This formula shows how often money is turned over in the economy.

The Velocity of Money Can Be Expressed as _____