What Do Most Economists Think Is the Most Accurate Statement

question 159

Multiple Choice

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

• A)It 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)It 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:

Myers-Briggs Type Indicator

A psychometric questionnaire designed to measure psychological preferences in how people perceive the world and make decisions.

Extroverted Types

Individuals who are outgoing, social, and derive energy from interacting with others.

Interpersonal Relationships

The connections and interactions between two or more people which can involve emotional, social, and professional dynamics.

Lifestyle Dichotomy

The division or contrast between two different ways of living, especially between personal values and societal expectations.