To Offset the Effect of Negative Growth in Money Velocity $\vec { v }$

question 47

Multiple Choice

To offset the effect of negative growth in money velocity ( $\vec { v }$ ) ,the central bank should:

• A) decrease the growth rate of the money supply.
• B) increase the growth rate of the money supply.
• C) apply a policy that stabilizes the growth in money velocity.
• D) apply a policy that reduces the growth in money velocity.

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