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Q: In any economy, the income velocity of the hoarded money (idle) by the public is equal to ________.
  • A. zero
  • B. greater than zero
  • C. one
  • D. greater than one
Correct Answer: Option A - In any economy, the income velocity of the hoarded money (idle) by the public is equal to greater than zero. Income velocity refers to the number of times a unit of currency is spent in a given period of time. It is calculated by dividing the nominal GDP by the money supply.
A. In any economy, the income velocity of the hoarded money (idle) by the public is equal to greater than zero. Income velocity refers to the number of times a unit of currency is spent in a given period of time. It is calculated by dividing the nominal GDP by the money supply.

Explanations:

In any economy, the income velocity of the hoarded money (idle) by the public is equal to greater than zero. Income velocity refers to the number of times a unit of currency is spent in a given period of time. It is calculated by dividing the nominal GDP by the money supply.