To Offset the Effect of Negative Growth in Money Velocity $\vec { v }$

question 264

Multiple Choice

To offset the effect of negative growth in money velocity ( $\vec { v }$ ) , the central bank should:

• A) decrease the growth rate of the money supply.
• B) increase the growth rate of the money supply.
• C) apply a policy that stabilizes the growth in money velocity.
• D) apply a policy that reduces the growth in money velocity.

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Definitions:

Horsetail

A seedless vascular plant having only one genus (Equisetum) in existence today; characterized by rhizomes, scalelike leaves, strobili, and tough, rigid stems.

Sporophyte

The diploid, spore-producing phase of a plant that alternates with the haploid gametophyte in the life cycle.

Angiosperms

Flowering plants that produce seeds enclosed within a fruit, representing the most diverse group of plants on Earth.

Gymnosperms

are a group of seed-producing plants that includes conifers, cycads, Ginkgo, and gnetophytes, characterized by not having flowers or fruit.