Economics 9708 · AS & A Level · Oligopoly

Oligopoly — practice question

Within the quantity theory of money equation, MV = PT, V is taken to mean the income velocity of circulation. Which change would be likely to lower the value of V?

  • Aa move to monthly rather than weekly salary payments by firms
  • Ban increase in interest rates
  • Can increase in the use of cash machines to reduce money balances held
  • Da decrease in the use of credit cards by individuals

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI