Accountancy, asked by geekmanavi5328, 10 months ago

Relation between total money stock and annual income velocity of money and total money stock

Answers

Answered by humera98765
0

Explanation:

The reason to worry over a low money velocity is if it reflects a shrinking economy or continued slow growth. If, on the other hand, the declining velocity is due to the money supply growing faster than a growing economy, this should indicate a growth problem. ... When GDP growth was weak, the money supply grew faster.

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