Browse:  #  A  B  C  D  E  F  G  H  I  J  K  L  M  N  O  P  Q  R  S  T  U  V  W  X  Y  Z 

Income velocity of money

Income velocity of money Definition

In economics, income velocity of money is the number of times an individual unit of currency turns over (i.e., is spent) in a specific period of time. Velocity affects the amount of economic activity generated by a given money supply.


The velocity of the money supply is Gross Domestic Product/money (be it M0, M1, M2, or M3 -- see money supply for details).


A rise or fall in the velocity of money usually follows a rise or fall in the interest rate.





Submit a Definition



Ask a Question

Learn the famous formula for money-making, based upon the THIRTEEN PROVEN STEPS TO RICHES! Get your FREE Copy & Instant Access to Think and Grow Rich by Napoleon Hill just by signing up.
 
   
Newsletter cover
Browse:  #  A  B  C  D  E  F  G  H  I  J  K  L  M  N  O  P  Q  R  S  T  U  V  W  X  Y  Z