If the demand for money is unstable then ________.
A) velocity is unpredictable
B) quantity of money is not linked to aggregated spending
C) aggregate spending rises
D) both A and B

Question

Quizplus · Accepted Answer

If the demand for money is unstable, it means that the velocity of money (the rate at which money changes hands in the economy) is unpredictable, and the quantity of money may not be linked to aggregated spending. Therefore, both options A and B are correct.

If the Demand for Money Is Unstable Then ________