In the modern Keynesian model,velocity
A)varies positively with the level of the interest rate but not with income.
B)varies positively with the level of the interest rate and with income.
C)is constant.
D)varies in the short run but is constant in the long run.
E)none of the above

Question

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In the modern Keynesian model, velocity varies positively with the level of the interest rate but not with income.

In the Modern Keynesian Model,velocity