Confidence Increase
Confidence Increase
Which of the following would cause velocity to decrease? An increase in public confidence in the economy incr?
Which of the following would cause velocity to decrease?
An increase in public confidence in the economy increases.
Banks stay open for longer hours.
Credit cards are made accessible to immigrants.
Interest rates on credit cards increase.
Interest rates on checking accounts increase.
I don't understand the whole concept of velocity in regards to economics. Please explain..
Thank You
If interest rates on credit cards increase people will use less credit and thereby spending will come down and therefore the velocity of circulation of money will decrease.
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