Question

In the equation of exchange, m x v = p x q, the v represents ___________________ the average amount of money in circulation the average frequency with which a dollar is spent the average price level quantity purchased

Answer 1

In the equation of exchange, m x v = p x q, the v represents velocity the average amount of money in circulation the average frequency with which a dollar is spent the average price level quantity purchased.  Velocity is the rate that money is exchanged in a given economy, the money is usally measured in a ratio format. To find the velocity, use the ratio of the gross national product over the companies supply of money that they have.