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Topic: Business
Number of pages / Number of words: 3 / 704
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(As shown in figures 1a and 1b)

In general, the velocity changes along with consumer confidence. If consumers are certain that the times are good, they spend more money, increasing the velocity of money. In times of uncertainty, spending habits become more conservative and velocity falls is decreased...


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In times of uncertainty, spending habits become more conservative and velocity falls is decreased. This is closely related to business cycles. Every four to five years real GDP rises and falls along with these cycles. During periods of expansions and contractions velocity rises and falls respectively...


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