Essay
Explain how the following statements relate to the velocity of money. Assume a constant money supply.
(a) Businesses around the country decide to pay workers only once a month in order to reduce paperwork and improve efficiency.
(b) Banks around the country begin using a new check clearing system that allows checks to clear much faster than they did previously.
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(a) Velocity would fall. This would cau...View Answer
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Correct Answer:
Verified
(a) Velocity would fall. This would cau...
View Answer
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