What does the velocity of money measure?
8 Months of Stimulus: The Velocity of Money

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Business
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7th - 12th Grade
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Hard
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5 questions
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1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
The total amount of money in circulation
The growth rate of GDP
The speed at which money changes hands
The rate of inflation
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How can GDP be calculated using the velocity of money?
By dividing the money supply by the velocity of money
By multiplying the money supply by the velocity of money
By adding the money supply to the velocity of money
By subtracting the velocity of money from the money supply
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What was one reason for the decline in the velocity of money after the coronavirus pandemic?
Higher interest rates
Increased money supply and reduced spending
Decreased money supply
Increased consumer confidence
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
In the balloon analogy, what does the air inside the balloon represent?
The inflation rate
The money supply
The GDP growth
The velocity of money
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is a potential risk if the velocity of money increases rapidly?
Deflation
Economic stability
Hyperinflation
Decreased GDP
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