Mainstream Economists Contend That the a Policy Rule Based on the Equation

Multiple Choice

Mainstream economists contend that the a policy rule based on the equation of exchange breaks down because:

A) There is a tight relationship between the money supply and nominal GDP
B) Velocity is more variable and unpredictable than expected
C) The money supply increases at a constant, not a variable rate
D) Nominal GDP is directly related to changes in the price level