Which of the Following Is NOT a Monetarist Proposition

question 12

Multiple Choice

Which of the following is NOT a monetarist proposition?

• A)monetary policy is better conducted by a rule than by discretion
• B)monetary policy affects the economy with long and variable lags
• C)the Fed should undertake a more active monetary policy
• D)the private sector is inherently stable
• E)to conduct monetary policy, money targets are generally better than interest rate targets

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Definitions:

Overhead Applied

The portion of manufacturing overhead costs allocated to each unit of production based on a predetermined rate or method.

Machine-Hours

A measure of production activity that represents the hours machines are operating to manufacture products.

Job-Order Costing System

An accounting system that calculates the cost of individual jobs or batches in manufacturing or service sectors, tracking direct materials, direct labor, and overhead per job.

Predetermined Overhead Rate

An estimated rate used to apply manufacturing overhead to products or job orders, calculated before a period begins based on expected costs and activity levels.