Velocity of Money

Quantity Theory of Money and Prices
A fundamental theory in monetarist economics that posits a relationship between the money supply (M), price levels (P), velocity of money (V), and national income (Q) summarized by the equation MV = PQ.
Velocity of Money
The velocity of money refers to the frequency at which one unit of currency is used to purchase domestically-produced goods and services within a certain period. It is essential in understanding the health and efficiency of an economy.

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