Velocity is not a constant, and it normally increases when interest rates rise.

If many of the workers who become unemployed as a result of a recession are retail workers:

A. they will return to employment once the government announces its stimulus and consumer confidence returns. B. the retail sector is likely to remain permanently smaller. C. the government likely will be unable to target its stimulus spending for these workers. D. the government will have to rely on targeting "retail-ready" projects for stimulus spending.

Social Security is

A) an insurance program operated by the federal government. B) a retirement program that invests the person's contributions into interest-earning financial assets so the proceeds can fund the person's retirement. C) a social insurance program that guarantees that an elderly person will never fall below the poverty level. D) an intergenerational transfer program that only vaguely relates to past earnings.