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The Behavior of the M1 Velocity of Money in Recent

Question 98

Multiple Choice

The behavior of the M1 velocity of money in recent years can be explained by


A) stability of interest rates
B) a low and stable rate of inflation
C) monetary policy that has been successful in stabilizing the economy
D) financial innovation creating new substitutes for money M1
E) a large number of banks and savings and loan associations going bankrupt

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