Question

using the following information what is the velocity of​ money?
Component Value
Money supply ​ $2,500
Price level 1.69
Real GDP ​ $15,000
The velocity of money is equal​ to:_______

Answer 1

Answer:

10.14

Explanation:

Velocity of money measures the rate at which money changes hands or is exchanged in an economy.

Velocity = (Price × aggreagrate income) / money supply

(1.69 × $15000) / $2500 = 10.14