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The Velocity of M1 Money Has Moved Erratically in the Past

Question 25

Multiple Choice

The velocity of M1 money has moved erratically in the past several years because


A) of low and stable rates of inflation
B) of regulatory changes allowing banks to pay interest on checkable deposits
C) interest rates have been stable
D) monetary policy has been highly erratic
E) a large number of banks and savings and loan associations have gone bankrupt

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