Which of the Following Is Consistent with the Monetarist View

question 34

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.

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Definitions:

Finance Charges

Fees and interest charged on borrowed money, typically associated with loans, credit cards, and financed purchases.

Credit Card Company

A financial institution that issues credit cards, allowing cardholders to purchase goods and services on credit.

Installment Plan

A method of payment of a purchase or services over a period of time.

Finance Charge

A fee representing the cost of credit or the cost of borrowing, including interest and other associated expenses.