Econometric models of the U.S. economy generally agree
A) on the quantitative impact of monetary policy over a horizon of several years.
B) that an increase in money growth will increase output in the short run.
C) that an increase in money growth will decrease output in the short run.
D) that an increase in money growth will decrease output in the long run.
E) that "rational expectations" is the best way to generate policy forecasts.
B
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As the expected future exchange rate for dollars increases
A) the demand for U.S. dollars increases. B) the supply of U.S. dollars decreases. C) both the demand for U.S. dollars and the supply of U.S. dollars increase D) Both answers A and B are correct.
The velocity of money is the total number of times per year that a dollar is used to purchase final goods and services
Indicate whether the statement is true or false