According to the quantity theory of money, velocity:
A. varies with changes in the growth rate of the money supply.
B. varies substantially with changes in the rate of interest and the expected rate of inflation.
C. is virtually constant, responding only to changes in the underlying institutional structure.
D. is fairly constant, responding only to changes in the expected rate of inflation.
Answer: C
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A good purchase for an investor seeking a high degree of liquidity with minimal market risk would be a U.S
A) Treasury bill. B) Treasury bond. C) Treasury note. D) savings bond.
An example of price discrimination is the price charged for:
a. an economics textbook at a campus bookstore. b. gasoline. c. theater tickets that offer lower prices for children. d. a postage stamp.
The statistical discrepancy that regularly arises in national income accounting refers to the slight difference between
a. personal income and personal disposable income. b. estimates of GDP and actual GDP. c. the income and expenditure approaches to the calculation of GDP. d. the quarterly and annual approaches to the calculation of GDP.
Which of the following is a fair bet based on the toss of an unbiased coin?
A) head: receive $5, tail: lose $5 B) head: receive $2, tail: lose $3 C) head: receive $0.5, tail: lose $1 D) head: lose $3, tail: lose $3