answersLogoWhite

0


Best Answer

1. Velocity of money is the rate or frequency money gets exchanged over a period of time. It can be siad that Volcoity of money can be a variable that determines of inflation. It may be used as a a warning sign for hyper-inflation.

User Avatar

Wiki User

13y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: How does the velocity of money effect inflation?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

A long-run effect of increasing the money supply can be inflation?

true


When the government attempts to cover large deficits by creating more money. what is the probable result called?

Inflation. Increasing the money supply dilutes the value of the money already in the economy. This dilution has the effect of driving up prices, thus inflation.


Effect of inflation on developing and developed country?

Inflation destroys it. The money made is lowered in value. Printing money causes this issue. If we print enough money the profit completely goes away and this your financial well being and development does also.


What effect would inflation have on a company's cost of capital?

What effect would inflation have on a company's cost of capital


How does mass effect velocity?

It doesn't. But velocity does effect mass : as velocity increases, mass increases.


Does horizontal velocity effect the rate of vertical velocity?

No, horizontal velocity and vertical velocity are independent and have no effect on each other.


What effect does fraction have on the velocity of the ball?

Do you mean "What effect does friction have on the velocity of the ball?"


What does effect mercantilism could have had on Europe and the American colonies?

It caused inflation as well as people in the Americas making their own money, not the government's.


Causes and effects of price rise in India and measures to overcome it?

The effect of inflation in India is an unbalanced relationship between the amount of money earned and the cost of regular goods. This relationship can be controlled by bank authorities by limiting inflation.


How does inflation effect cost of capital?

Inflation is too many dollars chasing too few goods. It happens when the money supply is variable and the cost of borrowing from commercial lenders (1. federal reserve) is too low.


What is the effect of gravity on velocity?

Gravity is a force and any force acting on a body changes its velocity in the direction of the force.


What is the effect of inflation on Output?

fgkknbiljfbnoidu;fgjnbit