Statistical Analysis Reveals That the Long-Run Money Velocity (For Euro-Area

question 98

Multiple Choice

Statistical analysis reveals that the long-run money velocity (for euro-area M3, which is equivalent to U.S. M2) :

• A) is unstable in the euro similar to the instability that exists in the U.S.
• B) is much more stable in the U.S. than in the euro area.
• C) has increased in the euro area since 1980.
• D) is more stable in the euro area than in the U.S.