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Multiple Choice Quiz
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1
Avoiding high inflation means avoiding rapid money growth.
A)True
B)False
2
It is safer to ignore changes in velocity in countries with high inflation rates than in countries with low inflation rates.
A)True
B)False
3
Financial innovations that economize on money holding increase the velocity of money.
A)True
B)False
4
All modern central banks target money growth.
A)True
B)False
5
Interest rates are the tool policymakers use to stabilize inflation in the short run.
A)True
B)False





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