When Something Happens to the Economy, Monetarists Ask Two Questions

question 74

Multiple Choice

When something happens to the economy, monetarists ask two questions:

• A)What does this do to government spending, and what does it do to tax revenues?
• B)What does this do to real GDP, and what does it do to the price level?
• C)What does this do to investment spending, and what does it do to net exports?
• D)What does this do to the money supply, and what does it do to velocity?

---

Definitions:

Sensory Memory

The shortest-term element of memory, it is the ability to retain impressions of sensory information after the original stimuli have ended.

Blink

A rapid, reflexive closure and reopening of the eyelids, serving as protection for the eyes or as a subtle communication signal.

Visual Impression

Visual Impression refers to the initial perception formed upon viewing something, influenced by its aesthetic, design, and overall appearance.

Semantic Code

Semantic Code refers to a system of encoding information that focuses on the meaning of words and phrases in communication and memory.