Monetarists Argue That

question 63

Multiple Choice

Monetarists argue that

• A) the Federal Reserve System should institute a prescribed rate of growth in the money supply.
• B) since velocity is unstable, a fixed annual increase in the money supply will exacerbate inflation in the long run.
• C) self-correction is less effective than activist monetary policy.
• D) policymakers should use monetary policy rather than fiscal policy to stabilize the economy.

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Definitions:

Singapore

An island city-state off southern Malaysia, known for its global financial center, multicultural population, and strict regulations.

Thailand

A Southeast Asian country known for its tropical beaches, opulent royal palaces, ancient ruins, and ornate temples displaying figures of Buddha.

Interdependent Self

A self that is relatively dependent on social relations and has more fuzzy boundaries.

Social Relations

The interactions between individuals and groups within a society, encompassing various forms of relationships and social structures.