Which of the following would most likely lower the velocity of money?
A) commercial innovations that facilitate exchange
B) a lower inflation rate
C) a decline in the effectiveness of money as a store of wealth
D) paying workers once a week instead of once a month

Question

Which of the following would most likely lower the velocity of money?  
A) commercial innovations that facilitate exchange 
B) a lower inflation rate 
C) a decline in the effectiveness of money as a store of wealth 
D) paying workers once a week instead of once a month

Quizplus · Accepted Answer

A lower inflation rate would most likely lower the velocity of money because when inflation is low, people and businesses are less inclined to spend or invest money quickly, leading to a slower circulation of money through the economy.

Which of the Following Would Most Likely Lower the Velocity