In recent years instability
A) has been primarily due to adverse supply shocks.
B) has been primarily in the velocity of money and the sign of the money multiplier.
C) has been primarily in shifts in the IS curve.
D) has been primarily slope changes in the IS curve.

Question

Quizplus · Accepted Answer

Instability in recent years has been primarily in the velocity of money and the sign of the money multiplier, reflecting changes in how quickly money circulates through the economy and the impact of the banking sector on the money supply.

In Recent Years Instability