The belief that the velocity of money is not constant but highly predictable is associated with the:

a. classical school.
b. Keynesian school.
c. supply-side school.
d. rational expectations school
e. monetarist school.

e

Economics

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As the ratio of price to marginal cost decreases, the Lerner index

A) stays the same. B) increases. C) decreases. D) can increase or decrease depending upon the shape of the demand curve.

Economics

Which of the following statements about a perfectly competitive market are TRUE?

I. The perfectly competitive industry faces an upward sloping labor supply curve. II. The individual firm in a perfectly competitive industry faces a perfectly elastic labor supply curve. A) I only B) II only C) both I and II D) neither I nor II

Economics