8 Months of Stimulus: The Velocity of Money

8 Months of Stimulus: The Velocity of Money

Assessment

Interactive Video

Business

7th - 12th Grade

Hard

Created by

Quizizz Content

FREE Resource

The video discusses the concept of the velocity of money and its impact on inflation and GDP. It explains how the COVID-19 pandemic affected money velocity, leading to economic concerns. The video uses a balloon analogy to illustrate how changes in money velocity can lead to inflation. It concludes with a discussion on potential future economic scenarios and the importance of managing money supply and velocity.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What does the velocity of money measure?

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