Economists Use the Term "Monetary Validation" to Refer to

question 85

Multiple Choice

Economists use the term "monetary validation" to refer to

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

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Definitions:

Marginal Revenue Product

The extra income produced by using an additional unit of a production input, like labor or capital.

Productivity

Refers to the measure of output per unit of input.

Input Demand Curves

Graphs showing the relationship between the price of inputs and the quantity of inputs demanded by producers.

Marginal Product

The elevation in production output stemming from the addition of one unit of input.