The velocity of money is represented as
-
\(\frac{\text{Money supply}}{\text{Real GDP}}\)
- \(\frac{\text{Real GDP}}{\text{Money supply}}\)
- \(\frac{\text{Nominal GDP}}{\text{Money supply}}\)
- \(\frac{\text{Real GDP}}{\text{Nominal GDP}}\)
The correct answer is: A
Explanation
The velocity of money is a measurement of the rate at which money is exchanged in an economy. Velocity of money is simply calculated by dividing the money supply with the economy's GDP.
money supply
GDP