"The rigid link between monetary growth and inflation ...had been broken." M1 grew faster in the deflationary 1980s than in the inflationary 1970s.Why?
A) The demand for money increased,reducing spending.
B) The demand for money decreased,due to financial deregulation.
C) The demand for money increased,as did velocity.
D) The demand for money decreased and the Fed targeted the money supply.
Correct Answer:
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Q67: Figure 13-2 Q68: In the 1979-82 period,the Fed pursued a Q69: Suppose that you are the central bank Q70: The immediate impact when the Federal Reserve Q71: As a result of financial deregulation Q73: In the mid-1980s,velocity "fell off the rails,"
A)the IS
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