Economists Use the Term "Monetary Validation" to Refer to

question 20

Multiple Choice

Economists use the term "monetary validation" to refer to

• A)the money supply being decreased in response to a demand shock.
• B)the Bank of Canada having a credible policy of zero inflation.
• C)the money supply being increased in response to a supply or a demand shock that raises the price level.
• D)people who hold smaller money balances at higher rates of interest.
• E)money supply increases which have been approved by Parliament,in response to supply or demand shocks that create an output gap.

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Definitions:

Scrutinizing

Examining or inspecting closely and thoroughly.

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