If money stock is $14 million and total spending is $7
million, the velocity of circulation must be:
From 1946 to 1972, U.S. GNP rose from
$211 billion to $1150 billion and the money stock rose
from $106 billion to $246 billion. What can we say about
the income velocity of circulation?
It remained constant.
We cannot say anything certain about
velocity based on this information.