In Recent Years,a Monetary Growth Rule Has Fallen Out of Favor

question 173

Multiple Choice

In recent years,a monetary growth rule has fallen out of favor because

• A)it is believed that active monetary policy destabilizes the economy and makes the business cycle worse.
• B)the growth rate of GDP has been highly unstable.
• C)the close relationship between movements in M1 and movements in real GDP has become weaker.
• D)the growth rate of M1 has become more stable.

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Definitions:

Managerial Responsibility

The duty and accountability held by managers to make decisions, oversee operations, and ensure the strategic objectives of the organization are met.

Controllable Costs

Expenses that can be directly controlled or influenced by a manager or decision-maker within a certain time frame.

Budgetary Control

A management tool used for monitoring and controlling costs by comparing actual performance with budgeted expectations, facilitating corrective actions.

Controlling Operations

This refers to the process of monitoring, managing, and adjusting a company's or organization's operations to meet set goals and objectives.