Did the velocity of M2 (or V2) shift much from 1960 through 1988?

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Economics

INSTRUCTIONS:

Based on the research of Small and Porter (Understanding the Behavior of M2 and V2) in the Federal Reserve Bulletin (Apr 1989, pp. 244-254): *Did the velocity of M2 (or V2) shift much from 1960 through 1988? (3 points) *What impact did the introduction of money market deposit accounts (MMDAs) at the end of 1982 have on the average level of V2? Why? (4 points) *What was the main factor causing V2 to deviate from its trend? Provide the definition of that factor. (5 points)

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Did the velocity of M2 (or V2) shift much from 1960 through 1988?

Economics

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