Answer :

According to the quantity equation, if real output and the money supply stay the same and the price level increases the velocity of money has to increase.

More about the velocity of money:

Money exchange rates in an economy are gauged by the term "velocity of money." It is the frequency with which funds are transferred from one entity to another. It also describes the total amount of money spent in a specific time frame.

Simply described, it's the rate at which firms and consumers spend money together in an economy. The GDP to the M1 or M2 money supply of a nation is typically used to calculate the velocity of money.

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