Keynes's theory of the demand for money is consistent with ________ movements in ________.
A)countercyclical;velocity
B)procyclical;velocity
C)countercyclical;expectations
D)procyclical;expectations

Question

Quizplus · Accepted Answer

Keynes's theory suggests that the demand for money is related to income and interest rates, which tend to move procyclically. As income rises in a boom, the demand for money increases, leading to a procyclical movement in velocity.

Keynes's Theory of the Demand for Money Is Consistent with ________