Which of the following is true?
A)Velocity is not constant over time.
B)The best way to study economic activity is to start with the equation and then integrate the money supply and the volume of international trade.
C)Control over the money supply implies that the Fed has precise control over real GDP.
D)All of the above are true.

Question

Which of the following is true?​
A)​Velocity is not constant over time.
B)​The best way to study economic activity is to start with the equation and then integrate the money supply and the volume of international trade.
C)​Control over the money supply implies that the Fed has precise control over real GDP.
D)​All of the above are true.

Quizplus · Accepted Answer

Velocity can vary over time depending on factors such as changes in spending habits, technology, and economic conditions. Therefore, option A is the only true statement. Option B is incorrect as there is no one "best" way to study economic activity, and option C is incorrect as the relationship between the money supply and real GDP is complex and not always precise.

Which of the Following Is True?​

Which of the Following Is True?