Multiple Choice
Fluctuations in velocity indicate that
A) changes in money holdings cannot be completely explained by changes in the price level.
B) changes in money holdings cannot be completely explained by changes in the volume of transactions.
C) the Fed will have an easier time in hitting monetary aggregate targets than in hitting interest rate targets.
D) inflation must be accelerating.
Correct Answer:
Verified
Correct Answer:
Verified
Q5: According to Friedman, the opportunity cost of
Q6: The liquidity preference theory emphasizes<br>A)the transactions motive
Q7: Stephen Goldfeld's estimate of the demand for
Q8: Keynes assumed that the expected return on
Q9: Why do economists and policy-makers view fluctuations
Q11: Which of the following is NOT considered
Q12: From 1959 to 1989, M2 velocity<br>A)declined sharply.<br>B)increased
Q13: Which of the following would cause demand
Q14: Irving Fisher converted the equation of exchange
Q15: Which model of the demand for real