If money stock is $14 million and total spending is $7 million, the velocity of circulation must be:
.5 2 21 98
From 1946 to 1972, U.S. GNP rose from $211 billion to $1150 billion and the money stock rose from $106 billion to $246 billion. What can we say about the income velocity of circulation?
It rose. It fell. It remained constant. We cannot say anything certain about velocity based on this information.