Monetarists Argue That

question 214

Multiple Choice

Monetarists argue that:

• A) the Federal Reserve System should allow the money supply to increase at a slow, steady annual rate.
• B) since the velocity of money is unstable, a fixed annual increase in the money supply will exacerbate inflation in the long run.
• C) self-correction is less effective than activist monetary policy.
• D) fiscal policy should always be used before monetary policy.

---

Definitions:

Object-relations School

A psychoanalytic theory focusing on relationships with others and the external and internal objects people form attachments to, shaping personality.

Rigid Boundaries

Strict limits set in relationships or systems that are difficult to adjust or cross.

Heritability

A statistical estimate of the proportion of observed variation in a particular trait among individuals in a population that is due to genetic differences.

Statistical Estimate

A value derived from statistical analysis that provides an approximation of a population parameter based on sample data.