Question 1
The velocity of money is
◦ the number of times a dollar bill exchanges hands in a year.
◦ the ratio of deposits to money supply.
◦ the number of times the Fed increases money supply in a year.
◦ the relationship between money supply and money demand.
Question 2
The velocity of money is the ratio of
◦ real GDP to the stock of money.
◦ the overall price level to the stock of money.
◦ nominal GDP to the stock of money.
◦ nominal GDP to the overall price level.