How does monetarism differ from the quantity theory of money

Reference no: EM131353845

1. Use the concept of opportunity cost to explain why velocity is higher at higher interest rates.

2. How does monetarism differ from the quantity theory of money?

3. Given the behavior of velocity shown in Figure 1, would it make more sense for the Federal Reserve to formulate targets for M1 or M2?

Reference no: EM131353845

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