A Measure Has Validity When __________

question 23

Multiple Choice

A measure has validity when __________.

• A)people can understand it
• B)people agree with it
• C)people use it
• D)it in fact measures whatever it is supposed to measure

---

Definitions:

Monetarists

Economists who posit that variability in the money supply critically impacts the short-term national economic output and the price level over longer spans.

Money Supply

This refers to the total amount of money (including cash, coins, and balances in bank accounts) in circulation within an economy at a given time.

Economic Behaviorists

Economic Behaviorists study how psychological, social, cognitive, and emotional factors affect economic decisions of individuals and institutions, and the consequences these decisions have on market prices, returns, and the allocation of resources.

Rational Behavior

Rational behavior refers to the decision-making process that involves choosing the most efficient means to achieve a desired result.