Suppose the Growth Rate of the Quantity of Money Increased

question 356

Multiple Choice

Suppose the growth rate of the quantity of money increased from 5 percent per year to 8 percent per year. According to the__________ , this event would trigger a business cycle expansion.

• A) monetarist cycle model
• B) aggregate supply cycle model
• C) real business cycle model
• D) Keynesian cycle model

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Definitions:

System-1

A term from cognitive psychology, referring to the fast, automatic, and often unconscious way of thinking.

Emotion

A complex psychological state that involves an individual's subjective experience, physiological response, and behavioral expression.

Reason

Those sentences in the argument that are used to show that the conclusion is true or that it is probably true.