Multiple Choice
Which of the following statements is least likely to be true?
A) By targeting the growth in the money supply, the government will be more successful in keeping inflation low if the demand for money becomes volatile.
B) Targeting the growth in the money supply will be more successful in keeping inflation low if the velocity of money is stable.
C) The demand for money influences the velocity of money.
D) A rules-based approach to monetary policy will be less effective when the demand for money is volatile.
Correct Answer:
Verified
Correct Answer:
Verified
Q89: The inflation target of the RBA is:<br>A)
Q90: Since the early 1980s, the velocity of
Q91: The velocity of money is the:<br>A) number
Q92: If the RBA believes inflation will rise
Q93: If the central bank announces that it
Q95: The belief that the velocity of money
Q96: A rules-based approach to monetary policy is
Q97: If the velocity of money is 5
Q98: According to the classical economists' equation of
Q99: If the supply of money is stable