The velocity of money might increase around the holidays

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Reference no: EM131109708

The velocity of money might increase around the holidays because people:

A) decrease their spending, which may mean that each dollar of income is spent more times.

B) decrease their spending, which may mean that each dollar of income is spent fewer times.

C) increase their spending, which may mean that each dollar of income is spent fewer times.

D) increase their spending, which may mean that each dollar of income is spent more times.

If the Federal Reserve wants to avoid inflation in those times, it should:

A) lower the money supply.

B) increase the money demand.

C) increase the money supply.

D) lower the money demand.

Reference no: EM131109708

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