Which of the following would cause velocity to decrease Whic

Which of the following would cause velocity to decrease?

	An increase in public confidence in the economy increases.
	Banks stay open for longer hours.
	Workers are paid more often.
	Interest rates on credit cards increase.
	Interest rates on checking accounts increase.

Increase in the interest rates on cedit cards will reduce their usage since customers will have to pay higher money. As a result, people will hold more money which reduces the velocity of money. (D) is correct.

Which of the following would cause velocity to decrease? Which of the following would cause velocity to decrease? An increase in public confidence in the econom

Which of the following would cause velocity to decrease Whic

Solution

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