Which of the Following Would Cause an Increase in the Velocity

question 185

Multiple Choice

Which of the following would cause an increase in the velocity of money?

• A)increased use of credit cards
• B)an increase in the money supply
• C)an increase in demand for money
• D)a decrease in interest rates
• E)a decrease in nominal GDP and a constant money supply

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Definitions:

Cognitive Dissonance

A psychological discomfort experienced when holding two or more conflicting beliefs, values, or attitudes.

Groupthink

A phenomenon where the desire for harmony in a decision-making group overrides a realistic appraisal of alternatives, often leading to poor decisions.

Conformity

involves aligning one's attitudes, beliefs, behaviors, and norms to those of a group or society.

Status

The rank an individual holds within a group.