If velocity is highly unstable, then targeting the money supply
a. will be effective in stabilizing the LM curve and interest rates.
b. has the same effects as targeting interest rates.
c. will be ineffective in stabilizing aggregate demand.
d. none of the above.
C
Economics
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If a corporation's retained earnings are expected to create future profits, the market price of the firm's stock will ________ and create a ________ for stockholders if the stock is sold
A) decrease; capital gain B) decrease; loss of wealth C) increase; loss of wealth D) increase; capital gain
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An auction is an example of a coordination mechanism.
Answer the following statement true (T) or false (F)
Economics