The Main Idea Behind Monetarism Is That

question 161

Multiple Choice

The main idea behind monetarism is that:

• A) the aggregate output will be even greater than potential output if the money supply grows at a constant rate.
• B) the aggregate price level will increase proportionally if the money supply grows at a constant rate.
• C) the government budget will have a deficit if the government spending grows at a constant rate.
• D) the aggregate output will grow steadily at a constant rate if the money supply also grows at a constant rate.

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Definitions:

Post-Retirement Benefits

Benefits that an employee begins to receive after retiring from a company, including pensions, health insurance, and life insurance.

Contingency

A future event or circumstance that is possible but cannot be predicted with certainty.

Employee Earnings Record

A record detailing the earnings and deductions for an employee over a period of time, including wages, bonuses, and taxes withheld.