Which of the Following Factors May Cause Velocity to Fluctuate

question 142

Multiple Choice

Which of the following factors may cause velocity to fluctuate?
I. changes in interest rates
II. changes in expectations about inflation
III. changes in expectations about bond prices
IV. an increase in the number of financial products that affects the demand for money

• A) I, II, III, and IV
• B) I, II, and III
• C) I, III, and IV
• D) I and II

---

Definitions:

Finished Goods

Products that have completed the manufacturing process and are ready to be sold to customers.

Custom Designed

Refers to products or solutions specifically crafted to meet the unique requirements or specifications of a customer.

Raw Materials

Basic materials that are used in the initial stages of production and manufacturing processes.

Invoice

Bill for goods or services provided by the seller to the purchaser.