Question 1
The ________ is the number of times a dollar bill exchanges hands in a year.
◦ velocity of money
◦ exchange rate
◦ money supply ratio
◦ government spending multiplier
Question 2
The velocity of money is equal to
◦
P ×
M /
Y.
◦
Y ×
P ×
M.
◦
P ×
Y /
M.
◦
P /
M ×
Y.