Question

Velocity is:

Answer 1

Answer:

d

Explanation:

Solution:-

- The Quantity of theory of money states:

                      M * V = P * Y

Where,

           M = Money supply

           V = Velocity of money exchange

           P = The price level

           Y = Real GDP

- By re-arranging the formula and solving for "V" we have:

                     V = P*Y / M

- The expression on right hand side increases if exchange of dollars increases.