If in a given year, 4 cars were sold for $5000 each and the velocity of money was 2 times, then what was the quantity of money in the economy?
Question
Solution 1
The velocity of money is the rate at which money is exchanged from one transaction to another. It's calculated as:
Velocity of Money = Total Transactions / Quantity of Money
We are given that the velocity of money is 2 times and 4 cars were sold for $5000 each. So, the total transactions in the ec Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob
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