All other things unchanged, the velocity of money will
A) increase if the quantity of money demanded decreases.
B) increase if the quantity of money demanded increases.
C) decrease if the quantity of money demanded decreases.
D) fall to zero if the quantity of money demanded increases.
Ans: A) increase if the quantity of money demanded decreases.
Economics
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A) is a spot sale of a currency. B) is a forward repurchase of the currency. C) is a spot sale of a currency combined with a forward repurchase of the currency. D) is a spot sale of a currency combined with a forward sale of the currency. E) make up a negligible proportion of all foreign exchange trading.
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