Why has the relationship between some monetary aggregates and economic activity failed to survive over time?
A)technological changes in the payment system
B)deregulation
C)the creation of new financial instruments and markets
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Technological changes in the payment system, deregulation, and the creation of new financial instruments and markets have all contributed to changing the relationships between monetary aggregates and economic activity over time. These factors have altered the way money is used and measured, and have made traditional monetary aggregates less useful in predicting economic activity.

Why Has the Relationship Between Some Monetary Aggregates and Economic