Why would you expect the velocity of circulation of a
Why would you expect the velocity of circulation of a monetary aggregate such as M1 or M2 to rise during periods of high interest rates and to decline during periods of low interest rates?
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1 what policy rule do monetarists believe the fed should follow what are the major assumptions underlying this policy
1 why might m1 and m2 grow at very different rates during a given year2 if excessively rapid growth in the money supply
1 suppose that long term interest rates in the economy were increasing due to strong economic growth and demand for
why would you expect the velocity of circulation of a monetary aggregate such as m1 or m2 to rise during periods of
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suppose the government increases expenditures by 120 billion dollars while increasing taxes by 120 billion dollars and
the rise in the us trade deficit during the 1980s was due largely to the rise in the us budget deficit on the other
increasing the promotional budget for a product in order to increase awareness is not advisable in the short run under
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