According to whose model does velocity change with interest rates?
A) Friedman
B) Keynes
C) both of the above
D) neither of the above

Name: According to whose model does velocity change with interest rates? A) Friedman B) Keynes C) both of the above D) neither of the above
Brand: Quizplus
Rating: 4.9 (43 reviews)

Question

Quizplus · Accepted Answer

Keynes' liquidity preference theory suggests that velocity changes with interest rates, as people hold more or less money depending on the interest rate.

According to Whose Model Does Velocity Change with Interest Rates