What term is a measure of the speed in which cash is spent by entrepreneurial firms, which often have negative income and a high growth rate?.

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07-09-2022
Business

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What term is a measure of the speed in which cash is spent by entrepreneurial firms, which often have negative income and a high growth rate?.

Sagot :

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Tundexi Tundexi · Answer 1 · 2022-09-09T06:24:19-04:00

The term "velocity of money" refers to the measure of the speed in which cash is spent by entrepreneurial firms which often have negative income and a high growth rate.

What is a velocity of money?

It refers to the frequency at which one unit of currency is used to purchase produced goods & services within a given time period. It can also be the number of times one dollar is spent to buy goods and services per unit of time.

If velocity of money is increasing, then, more of transactions are occurring between individuals in an economy. The frequency of currency exchange can be used to determine the velocity of a given component of the money supply.

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What is a velocity of money?

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