If you earn and spend $300 per week and maintain an average cash balance of $100 per week, your velocity of money is

Having more relevant instruments

A) is a problem because instead of being just identified, the regression now becomes overidentified. B) is like having a larger sample size in that the more information is available for use in the IV regressions. C) typically results in larger standard errors for the TSLS estimator. D) is not as important for inference as having the same number of endogenous variables as instruments.

Due to the multiplier effect, a decrease in investment spending

a. is greater than the resulting decrease in GDP b. has a minimal impact on the economy c. causes the money supply to increase d. leads to an even larger decrease in output e. results in increased autonomous consumption