Historical Evidence Has Shown That the M1 Velocity of Money

question 68

Multiple Choice

Historical evidence has shown that the M1 velocity of money in the United States

• A)has remained constant
• B)has remained predictable but not constant
• C)has varied over the century but is currently near constant
• D)has varied over the century and has recently fluctuated a quite a bit
• E)is not correctly placed within the equation of exchange

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Definitions:

Personal Income Taxes

Taxes levied on individuals or households based on the income they earn within a given year.

Subsidies

Financial support granted by the government or a public body to help an industry or business keep the prices of a commodity or service low.

Automobile Purchases

The action or activity of buying vehicles intended for personal or commercial use on roads.

Marginal Tax Rate

The rate at which the last dollar of income is taxed, indicating the percentage of additional income that is paid in taxes.