Answer to Question #236844 in Macroeconomics for Charlie

Question #236844

what effects do interest rates have on velocity?

Expert's answer

As velocity of money is directly related to the frequency of exchange.

As interest rates rise, the velocity of money increases.

Learn more about our help with Assignments: Macroeconomics

Comments

No comments. Be the first!

Leave a comment

Related Questions

1. Distinguish between transactionary demand for money and speculative demand for money. What are the d
2. What are inflationary and deflationary gaps? Used money and goods market diagrams to illustrate how
3. Assume that autonomous consumption is GHS1,791 billion and disposal income is GHS13,000 billion. Usi
4. Argue how free trade rather than protectionism can favour countries ? 8 marks
5. Distinguish between income elasticity of demand and cross elasticity of demand. Include in your answ
6. Illustrate and examine how the individual supply of labor curve demonstrates the way an individual d
7. Draw and explain the yield curve that represents the relationship between short and medium term bond