In the face of a negative shock to consumer confidence, politicians are on the fence about whether to implement policies based on the advice of economists or to make decisions on the basis of Tarot card readings. What would happen during the period in which they are making up their minds about which strategy to pursue?
A) $\vec { v }$
Would rise
B) $\vec { v }$
Would fall
C) $\bar { Y } _ { R }$
Would rise
D) $\bar { P }$
Would rise

Question

Quizplus · Accepted Answer

During the period of indecision, consumer confidence remains low, leading to reduced spending and investment, which would cause the velocity of money ($\vec { v }$) to fall.

In the Face of a Negative Shock to Consumer Confidence v⃗\vec { v }v

In the Face of a Negative Shock to Consumer Confidence $\vec { v }$