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The "amount" of money is the total outstanding dollars multiplied by the number of times it changes hands (the "speed"). When the economy slows down, the govern
by Raphael 15y ago
The "amount" of money is the total outstanding dollars multiplied by the number of times it changes hands (the "speed"). When the economy slows down, the government borrows money and spends it on stimulus, where they hope it will circulate, changing hands as many times as possible.