A Policy Implication of Monetarism Is That

question 70

Multiple Choice

A policy implication of monetarism is that:

• A) full employment will always be maintained.
• B) countercyclical policies have no effect on the economy.
• C) the growth of the money supply is caused by economic fluctuations.
• D) constant growth of the money supply is better than discretionary policies.

---

Definitions:

Financial Statement(s)

Formal records of the financial activities and position of a business, person, or other entity, presented in a structured manner.

Normal Balance

The side of an account (debit or credit) where increases in the account are recorded.

Financial Statement(s)

Documents that provide an overview of a business's financial condition, including balance sheet, income statement, and cash flow statement.

Permanent/Temporary

Categories of accounts in accounting, where permanent accounts have balances that are carried over into future periods, while temporary accounts are closed at the end of each accounting period.