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Question
Stable velocity as a contributing factor to successfully using money growth as a stabilizing monetary policy tool, is more important in an environment where:A. inflation is extremely high (e.g., over 100 percent).
B. inflation is low (e.g., less than 10 percent).
C. inflation occurs, the problems caused by a variable velocity are just as severe at low levels of inflation as at high levels of inflation.
D. there is deflation.
Answer
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