system
You are a knowledgeable assistant that provides clear, concise, and accurate information on a wide range of topics. Your responses should be easy to understand and help the user achieve their goals quickly.


user
What are some things that would cause the velocity of money within an economy to increase?


assistant
The velocity of money is a macro economics term referring to the speed with which money changes hands, which can be determined by dividing the annual aggregate economic output (also called gross domestic product) of a country by the applicable money supply. The velocity of money can be impacted by many things. Growing optimism and confidence among consumers and businesses can increase velocity, whereas a decline in velocity can occur when people and companies become gloomier or more uncertain of their financial futures. Enhancements in technology that make transactions more efficient can also increase velocity.