If the Money Demand Function Is Instable Then ________

question 102

Multiple Choice

If the money demand function is instable then ________.

• A) velocity of money is unstable and monetary policy is more effective
• B) monetary policy is ineffective
• C) fiscal policy is more effective than monetary policy
• D) neither fiscal nor monetary policy will impact aggregate output

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Definitions:

Pons

A part of the brain located above the medulla and below the midbrain, playing a crucial role in regulating breathing, communication between different parts of the brain, and sensations such as hearing.

Fine-Motor Movement

Small movements that involve the coordination of small muscle groups, typically in the hands and fingers, such as writing or buttoning a shirt.

Cerebellum

A major structure of the hindbrain that is involved in fine motor control, balance, coordination, and voluntary movements.

Blood Pressure

The pressure of circulating blood on the walls of blood vessels, often measured for health assessments.