Can changes in the growth rate of the velocity of money create a recession?

A. Yes, if the change is negative and large enough.
B. No, because changes in the growth rate of velocity are temporary.
C. No, because changes in the growth rate of velocity only affect inflation, not real growth.
D. Yes, if the change is an unexpected increase in the growth rate of the velocity of money.


Answer: A. Yes, if the change is negative and large enough.

Economics

You might also like to view...

Which of the following is an assumption used when drawing a production possibilities frontier?

i. Human wants and desires are limited to what is available. ii. Only two goods are considered. iii. The level of technology is fixed and unchanging. A) i only B) ii only C) i and iii D) ii and iii E) i, ii, and iii

Economics

Exemptions, deductions, and tax credits can lower a taxpayer's taxable income. Discuss their relative merits in terms of helping taxpayers reduce their tax liability

What will be an ideal response?

Economics

In the case of errors-in-variables bias,

A) maximum likelihood estimation must be used. B) the OLS estimator is consistent if the variance in the unobservable variable is relatively large compared to variance in the measurement error. C) the OLS estimator is consistent, but no longer unbiased in small samples. D) binary variables should not be used as independent variables.

Economics

Monopolistic competition is an industry in which products are differentiated, but in oligopolies products are standardized.

Answer the following statement true (T) or false (F)

Economics