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

Question

Quizplus · Accepted Answer

The belief that the velocity of money is predictable and not constant is a core principle of the monetarist school, which emphasizes the importance of the quantity of money in determining economic activity.

The Belief That the Velocity of Money Is Not Constant