Keynes's theory of the demand for money implies that velocity is
A) not constant but fluctuates with movements in interest rates.
B) not constant but fluctuates with movements in the price level.
C) not constant but fluctuates with movements in the time of year.
D) a constant.
A
Economics
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Define and explain how we calculate the marginal propensity to consume and the marginal propensity to save
What will be an ideal response?
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The Federal Reserve uses the federal funds rate as an operating target because
A) it is an excellent indicator of the economy's underlying inflation rate. B) it is very sensitive to bank reserve level changes. C) it is determined by the Treasury. D) the Fed sets the rate directly.
Economics