Suppose an economy produces 100 kg of rice in a year and sells that for Rs.100 per kg. If the quantity of money in the economy is Rs.500, then the velocity of money is ________.
1 markMacroeconomicsDemand for money and monetary theoriesThe quantity theory of money and velocityModerateabout 2 min
IIT JAM 2025 Question 49: Demand for money and monetary theories
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Demand for money and monetary theories has come up 82 times in 7 exams since 2005.
What this question tests
This question is on The quantity theory of money and velocity, part of Demand for money and monetary theories in Macroeconomics.
The link between the money stock, prices and output through velocity.
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