Which of the Following Statements Is Least Likely to Be

question 73

Multiple Choice

Which of the following statements is least likely to be true?

• A)By targeting the growth in the money supply, the government will be more successful in keeping inflation low if the demand for money becomes volatile.
• B)Targeting the growth in the money supply will be more successful in keeping inflation low if the velocity of money is stable.
• C)The demand for money influences the velocity of money.
• D)A rules-based approach to monetary policy will be less effective when the demand for money is volatile.
• E)A rules-based approach to monetary policy will be less effective when the velocity of money is volatile.

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