The of refers to the number of times, on average, each dollar of the money supply is used to make purchases in a given period.
Question
The of refers to the number of times, on average, each dollar of the money supply is used to make purchases in a given period.
Solution
The term you're referring to is "Velocity of Money". It refers to the frequency at which one unit of currency is used to purchase domestically- produced goods and services within a given time period. In other words, it's the rate at which money is exchanged from one transaction to another. It's used to measure the rate at which money is being used in an economy.
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