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JAMB Economics 1988 Question 34

Question 34

Money and Inflation

The rate at which money changes hands is known as the

  1. A.rate of inflation
  2. B.velocity of transactions
  3. C.velocity of money
  4. D.velocity of circulation.
Show the answer and explanation

Answer: D (velocity of circulation.)

Explanation

The number of times a unit of money is spent in a period is called the velocity of circulation.