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How does the velocity of money affect a national economy?.
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31 votes
How does the velocity of money affect a national economy?.

User Kanth
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19 votes

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when the velocity of money is high, it means each dollar is moving fast to purchase goods and services. It reflects high demand,which generates more production. When the velocity is low, each dollar is not being used very often to buy things.

User Ali Almoullim
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