Which of the Following Statements Is Most Correct

question 45

Multiple Choice

Which of the following statements is most correct?

• A) The velocity of M2 is relatively stable across all time periods.
• B) The velocity of M2 is less stable than the velocity of M1.
• C) The velocity of M2 is more volatile in the short run than the long run.
• D) Fisher's assumption about money velocity being stable in the long run was incorrect.

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Definitions:

Negative Consequences

Unfavorable results or outcomes that arise as a result of an action, decision, or behavior, potentially causing harm or disadvantage.

Negative Reinforcement

A behavioral principle where the removal of an unfavorable event or outcome following a desired behavior increases the likelihood of that behavior being repeated in the future.

Intermittent Reinforcement

A conditioning schedule where a response is sometimes reinforced, leading to more robust behavioral responses.

Variable Interval Schedule

A reinforcement schedule in which a response is rewarded after an unpredictable amount of time has passed.