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The Data on the Circulation Velocity of Money Since 1920

Question 67

Multiple Choice

The data on the circulation velocity of money since 1920 indicate that the velocity


A) has steadily decreased over time.
B) is quite stable in the short run.
C) tends to increase during depressions and decrease during booms.
D) has been fairly stable over the long run but not over the business cycle.
E) has been directly proportional to GDP.

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