Monetarists believe that velocity and the money supply always have an inverse relationship. changes erratically. is...
Monetarists believe that velocity
| and the money supply always have an inverse relationship. |
| changes erratically. |
| is constant. |
| changes in a way that can be understood and predicted. |
Homework Answers
Ans) the correct option is and the money supply always have an inverse relationship.
The equation of exchange states M= PT/ V
Money supply (M) and velocity ( V) work in the opposite direction.
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Monetarists believe that velocity
and the money supply always have an inverse relationship.
changes erratically.
is...
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•because ( the federal reserve controls M/ velocity is assumed
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• if the velocity of money is 2, the money supply in this
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•because ( the federal reserve controls M/ velocity is assumed
to be constant/ the AD curve is downward sloping ), the percentage
increase in the price level Is ( less then/ the same as/ greater
then ) the percentage increase im the money supply. the illustrates
the ( importance of the federal reserve /...
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