Empirical studies on velocity and money demand have limited usefulness for monetary policy because they often ignore
A) money supply effects.
B) interest rate effects.
C) inflation effects.
D) lags in monetary policy.

Question

Quizplus · Accepted Answer

Empirical studies on velocity and money demand often ignore lags in monetary policy, which can make them less useful for monetary policy.

Empirical Studies on Velocity and Money Demand Have Limited Usefulness