Historically, velocity has been:
A) relatively stable, though the recent crisis has temporarily caused some significant changes.
B) relatively stable, though the Great Depression of the 1930s caused some significant fluctuations.
C) in sync with the business cycle, slowing during times of decline and increasing with recovery.
D) in sync with the business cycle, increasing during times of decline and increasing with recovery.

Question

Quizplus · Accepted Answer

Velocity of money has generally been stable, but economic crises like the recent financial crisis can cause significant temporary changes.

Historically, Velocity Has Been