A-LevelEconomicsThe macroeconomy9708/33 · Oct/Nov 2017 · Q251 Mark
In the Quantity Theory of Money equation, MV = PT, V is defined as the income velocity of circulation.
- 25Which change would tend to reduce the value of V? A a move to monthly rather than weekly salary payments by firms B an increase in interest rates C an increase in the use of cash machines to reduce money balances held D an increase in the use of credit cards by individuals[1]
Mark scheme
Marking points from the official mark scheme (Oct/Nov 2017). The mark or mark type is shown in brackets.
- [1] A
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