The velocity of money is
ECONOMICS
JAMB 2023
The velocity of money is
- A. The real money supply divided by the real GDP
- B. The money supply multiplied by the price level
- C. The money supply divided by the price level
- D. The ratio of real GDP to the real money supply
Correct Answer: D. The ratio of real GDP to the real money supply
Explanation
Velocity of money is the total amount of money in circulation in an economy. It is calculated as Velocity of money = GDP/Money Supply
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