Which of the following is correct?

A. The money supply growth rate and the growth rate of velocity can both be changed permanently.
B. The money supply growth rate can be changed permanently, but changes in the growth rate of velocity are always temporary.
C. The growth rate of velocity can be changed permanently but changes in the money supply growth rate are always temporary.
D. Neither the money supply growth rate nor the growth rate of velocity can be changed permanently.


Ans: B. The money supply growth rate can be changed permanently, but changes in the growth rate of velocity are always temporary.

Economics

You might also like to view...

In the short run, a firm in monopolistic competition produces where P = MC

Indicate whether the statement is true or false

Economics

If the demand for a product is elastic, the quantity demanded changes by a larger percentage than the percentage change in price

Indicate whether the statement is true or false

Economics

Total aggregate demand includes ________

A) planned investment spending B) consumption expenditures C) net exports D) all of the above E) none of the above

Economics

A positive, pure income effect can be obtained by

A) increasing the real wage. B) increasing the tax. C) increasing the dividend. D) decreasing leisure.

Economics