The Data on the Circulation Velocity of Money Since 1920

question 11

Multiple Choice

The data on the circulation velocity of money since 1920 indicate that the velocity

• A) has steadily decreased over time.
• B) is quite stable in the short run.
• C) tends to increase during depressions and decrease during booms.
• D) has been fairly stable over the long run but not over the business cycle.
• E) has been directly proportional to GDP.

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Definitions:

Oranges

A citrus fruit rich in vitamin C, known for its sweet flavor and segmental structure.

Very Strong Association

A term used in statistics to describe a relationship between two variables that shows a high level of correlation or dependency.

Linear Association

A relationship between two variables that can be graphically represented with a straight line, indicating that changes in one variable correlate to changes in the other.

Negative Association

A connection between two variables where as one variable rises, the other falls.