Monetarists believe that

a. velocity is independent of the money supply
b. the transactions demand for money influences the velocity of money
c. the economy does not always operate at full employment
d. velocity is constant if the money supply is constant
e. velocity varies directly with the money supply


A

Economics

You might also like to view...

We say that individuals get a "warm glow" from giving to a public good if they not only get utility from the public good but also from giving itself. Explain the following: "While warm glow lessens the free rider problem, it cannot eliminate it."

What will be an ideal response?

Economics

The notion that the value of money is determined by the overall quantity of money in existence is known as the:

A. quantity theory of money. B. money quantity theory. C. price level theory. D. level theory of prices.

Economics

Prohibiting the use of "dirty" fuels by industry is an example of

a. voluntarism. b. direct controls. c. taxes on emissions. d. none of the above.

Economics

Many macroeconomic variables a. fluctuate together and by different amounts

b. fluctuate together by the same amounts. c. never fluctuate together. d. fluctuate together about half of the time and by the same amount.

Economics