When Franco Modigliani Stated "We Are All Monetarists Now," He

question 34

Multiple Choice

When Franco Modigliani stated "we are all monetarists now," he was referring to the fact that most economists now believe that

• A)inflation cannot be controlled unless monetary growth is controlled
• B)monetary growth has a major effect on long-term economic growth
• C)fiscal policy has no short-term effect on the level of output
• D)discretionary monetary policy should never be undertaken
• E)all of the above

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Definitions:

Break-Even Point

The juncture where a business's total expenses match its total income, resulting in neither a profit nor a loss.

Firm's Output

The total quantity of goods or services produced by a company over a specific period.

Shutdown Point

The level of production and price point at which a company's revenue just covers its variable costs, below which the firm would cease operations to minimize losses.

Firm's Output

The total quantity of goods or services produced by a company within a specific time period.