Modern Monetarists argue that the velocity of money is
A) constant.
B) the inverse of the money multiplier.
C) unmeasurable.
D) predictable.

Question

Quizplus · Accepted Answer

Modern Monetarists, following the ideas of Milton Friedman, believe that the velocity of money is predictable over the long term, although it may fluctuate in the short term. They argue that while it's not perfectly constant, it tends to move in predictable ways in response to changes in economic policy and conditions.

Modern Monetarists Argue That the Velocity of Money Is