The belief that the velocity of money is not constant but highly predictable is associated with the:
A) classical school.
B) Keynesian school.
C) monetarist school.
D) rational expectations school

Question

Quizplus · Accepted Answer

The belief that the velocity of money is highly predictable is associated with the monetarist school of thought, which emphasizes the importance of controlling the money supply to stabilize the economy. The classical school argues that markets are self-correcting, the Keynesian school emphasizes the role of government intervention, and the rational expectations school suggests that people make economic decisions based on their expectations of future events.

The Belief That the Velocity of Money Is Not Constant