Which of the Following Pieces of Evidence Is Most Consistent

question 390

Multiple Choice

Which of the following pieces of evidence is most consistent with the monetarist theory?

• A) Labor supply decisions do not seem to depend on real interest rates.
• B) Changes in real GDP and the quantity of money move closely together.
• C) Productivity and GDP move closely together.
• D) Money wage rates take some time to adjust to price changes.

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