Fluctuations in Velocity Indicate That

question 10

Multiple Choice

Fluctuations in velocity indicate that

• A)changes in money holdings cannot be completely explained by changes in the price level.
• B)changes in money holdings cannot be completely explained by changes in the volume of transactions.
• C)the Fed will have an easier time in hitting monetary aggregate targets than in hitting interest rate targets.
• D)inflation must be accelerating.

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