The banking sector experiencing bank panic when: Select one: a. Many depositors simultaneously decide to withdraw money from a bank. b. believe that discretionary monetary policy should be replaced by a fixed rule relating to the growth of the money supply. c. Many banks experiencing runs at the same time. d. None of the above. Velocity is: Select one: a. Money supply is the primary determinant of both short-run movements in nominal GDP and long-run movements in prices. b. Measured as the ratio of nominal GDP to the stock of money. C. Keynesian theories hold that many other forces besides money also affect aggregate demand. d. The rate at which money circulates through the economy.

The banking sector experiencing bank panic when: Select one: a. Many depositors simultaneously decide to withdraw money from a bank. b. believe that discretionary monetary policy should be replaced by a fixed rule relating to the growth of the money supply. c. Many banks experiencing runs at the same time. d. None of the above. Velocity is: Select one: a. Money supply is the primary determinant of both short-run movements in nominal GDP and long-run movements in prices. b. Measured as the ratio of nominal GDP to the stock of money. C. Keynesian theories hold that many other forces besides money also affect aggregate demand. d. The rate at which money circulates through the economy.

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter15: Monetary Theory And Policy

Section: Chapter Questions

Problem 3.7P

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