If the Fed Adheres to a Strict "Money Growth Rule $\vec { M }$

question 144

Multiple Choice

If the Fed adheres to a strict "money growth rule" of 3% (that is, they keep $\vec { M }$ at 3% no matter what) , what happens if velocity growth ( $\vec { v }$
) drops?

• A) Inflation, real growth, and nominal wage growth all decrease.
• B) Inflation increases, but real growth and nominal wage growth decrease.
• C) Inflation and nominal wage growth decrease, but real growth increases.
• D) Inflation, real growth, and nominal wage growth all increase.

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Definitions:

Case Management

A collaborative process that assesses, plans, implements, coordinates, monitors, and evaluates the options and services required to meet an individual's health needs using communication and available resources.

SMI

Severe Mental Illness; a term used to describe a mental disorder that significantly impairs one's ability to function in daily life over a prolonged period.

Psychotherapy

A form of therapy involving psychological methods, principally when conducted with individuals or groups, to treat mental health problems.

Vocational Rehabilitation

A process aimed at enabling persons with disabilities, health conditions, or social disadvantages to secure and retain employment.