A.
\(\frac{\text{Money supply}}{\text{Real GDP}}\)
B.
\(\frac{\text{Real GDP}}{\text{Money supply}}\)
C.
\(\frac{\text{Nominal GDP}}{\text{Money supply}}\)
D.
\(\frac{\text{Real GDP}}{\text{Nominal GDP}}\)
Correct Answer: Option A
Explanation
The velocity of money is a measurement of the rate at which money is exchanged in an economy. Velocity of money is simply calculated by dividing the money supply with the economy's GDP.
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