Historical evidence has shown that the M1 velocity of money in the United States
A)has remained constant
B)has remained predictable but not constant
C)has varied over the century but is currently near constant
D)has varied over the century and has recently fluctuated a quite a bit
E)is not correctly placed within the equation of exchange

Question

Quizplus · Accepted Answer

Historical evidence shows that the M1 velocity of money in the United States has varied over the century and has recently fluctuated quite a bit. This is due to changes in consumer preferences, technological advances, and shifts in the economy.

Historical Evidence Has Shown That the M1 Velocity of Money