1.Velocity of Money in the United States. Using the Federal Reserve Bank of St. Louis Web site (http:// research.stlouisfed.org/fred2/), calculate the velocity of M1 and M2 in 1960 and the most recent...

1.Velocity of Money in the United States. Using the Federal Reserve Bank of St. Louis Web site (http:// research.stlouisfed.org/fred2/), calculate the velocity of M1 and M2 in 1960 and the most recent year available. How have they changed?

2. To eliminate a budget deficit, a government can _________ (increase/decrease) taxes and/or _________ (increase/decrease) spending.

3. During hyperinflations the velocity of money tends to _________ sharply.

4. Economists call inflation “hyperinflation” when the inflation rate exceeds _________ percent per month.

5. Hyperinflations cannot occur unless the growth rate of _________ is very high.