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13.5 Pitfalls for monetary policy  (Page 14/20)

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  • Card 14 / 20:
    Why might the velocity of money change unexpectedly?

    If consumer optimism changes, spending can speed up or slow down. This could also happen in a case where consumers need to buy a large number of items quickly, such as in a situation of national emergency.

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Practice FlashCards 9 Key Terms 4

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Source:  OpenStax, University of houston downtown: macroeconomics. OpenStax CNX. May 28, 2014 Download for free at http://legacy.cnx.org/content/col11653/1.3
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