Multiple Choice
Given the equation of exchange, MV = PY, when central bankers control short-term nominal interest rates by adjusting the level of reserves in the banking system, their actions are expected to primarily affect:
A) The rate of growth of V
B) The value of V
C) Potential Y as opposed to current Y
D) The rate of growth of M
Correct Answer:
Verified
Correct Answer:
Verified
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