What Do Most Economists Think Is the Most Accurate Statement

question 73

Multiple Choice

What do most economists think is the most accurate statement about velocity?

• A)Velocity is fairly constant in the short run but varies considerably in the long run, complicating predictions about nominal GDP.
• B)M₁ velocity is more stable in the short run than M₂ velocity, and it has been a superior tool in predicting changes in nominal GDP.
• C)Velocity is not constant in the short run, and predictions about nominal GDP have not fared well.
• D)M₂ velocity has been less stable than M₁ velocity, but both are reliable enough to make accurate predictions about changes in nominal GDP.

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Definitions:

That's-not-all Technique

A persuasion method where before finalizing a deal, an additional offer is made to make the proposal seem more attractive.

Reciprocal Concessions

A negotiation strategy where each party makes compromises to reach an agreement, often strengthening the relationship through mutual sacrifice.

That's-not-all Technique

A sales strategy where additional items or discounts are offered to make a deal look more appealing without giving the buyer time to refuse the initial offer.

Disrupt-then-reframe Technique

A persuasion strategy that involves presenting an unexpected element (disruption) followed by a rational argument (reframe) to persuade someone.