The income version can be calculated by dividing the Gross National Product by the total money supply.
The income version can be calculated by dividing the Gross National Product by the total money supply. Influenced by the prevailing interest rate, it's value is almost always above 1, as seen in the transactions version, which is calculated by dividing total sales volume by the total money supply in circulation, thus determining how many times the same monetary unit was spent in a given period of time. FTP, what is this measure of the speed with which money circulates within an economy?
The income version can be calculated by dividing the Gross National Product by the total money supply.
velocity of circulation