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Author Question: It is difficult to test whether the velocity of money is constant over time because (Read 35 times)

Pineappleeh

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on: Apr 19, 2019

Question 1

The Fed increases money supply. In this case, the time lag problem of monetary policy may


◦ increase the velocity of money in the short run.
◦ increase real GDP in the short run.
◦ decrease the velocity of money in the short run.
◦ None of these

Question 2

It is difficult to test whether the velocity of money is constant over time because


◦ there has been very little variation in the money supply over time.
◦ there may be a time lag between a change in the money supply and its effects on nominal GDP.
◦ there is only one definition of the money supply.
◦ it is difficult to measure the value of nominal GDP over time.
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
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Marked as best answer by Pineappleeh on Apr 19, 2019

anoriega3

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Reply #1 on: Apr 19, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Pineappleeh

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Reply 2 on: Apr 19, 2019
YES! Correct, THANKS for helping me on my review

helenmarkerine

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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