If Velocity Is Highly Unstable,then Targeting the Money Supply

question 44

Multiple Choice

If velocity is highly unstable,then targeting the money supply

• A)will be effective in stabilizing the LM curve and interest rates.
• B)has the same effects as targeting interest rates.
• C)will be ineffective in stabilizing aggregate demand.
• D)none of the above.

---

Definitions:

Cost Of Goods Sold

The amount of money a firm spent to buy or produce the products it sold during the period to which the income statement applies.