Which of the Following Is Consistent with the Monetarist View

question 123

Multiple Choice

Which of the following is consistent with the monetarist view?

• A)A reduction in taxes will leave the value of real output unaffected.
• B)Prices may be affected by increases in G or reductions in T.
• C)Changes in M may cause changes in V and Q in the long run.
• D)Monetary policy should be used to correct a shortfall in aggregate demand.

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Definitions:

Metabolism

The set of life-sustaining chemical reactions in organisms to convert food into energy, build molecules, and eliminate waste products.

Protein Molecules

Large biomolecules composed of one or more chains of amino acids that perform a vast array of functions within organisms.

Adenine Base

A nitrogenous base, one of the four constituent bases of DNA and RNA, paired with thymine in DNA and uracil in RNA.

Phosphate Groups

Functional groups consisting of a phosphorus atom bonded to four oxygen atoms, critical components in the energy transfer within cells and in the structure of nucleic acids.