Economists Who Accept the Quantity Theory of Money Favor a Monetary

question 121

True/False

Economists who accept the quantity theory of money favor a monetary rule because they believe the short-run effects of monetary policy are unpredictable and the long-run effects are on the price level, not real output.

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Definitions:

James-Lange theory

A theory of emotion that suggests that emotions occur as a result of physiological reactions to events.

Emotions

Complex psychological states that involve a subjective experience, a physiological response, and a behavioral or expressive response.

Physical changes

Physical changes are alterations in the form, appearance, or structure of matter that do not change its identity or chemical composition.

Subjective Standard

A criterion for judgment based on personal feelings, tastes, or opinions rather than objective facts or evidence.