Targeting Money Growth Will Lead to Stable Output Growth Only

question 7

Multiple Choice

Targeting money growth will lead to stable output growth only if

• A)money demand and velocity change proportionally with output.
• B)fiscal policy remains unchanged.
• C)money demand and velocity are stable.
• D)the IS curve is steep.

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Definitions:

Terminating Decimal

A decimal fraction that has a finite number of digits after the decimal point.

Five-Figure Accuracy

A level of precision in numerical calculations or measurements where the result is accurate to five digits.

Four-Figure Accuracy

A level of precision in numerical representations where the number is rounded or truncated to four significant digits.

Terminating Decimal

A decimal characterized by a restricted amount of digits after the decimal point.