Which Monetarist Idea Has Been Absorbed into Mainstream Macroeconomics

question 191

Multiple Choice

Which monetarist idea has been absorbed into mainstream macroeconomics?

• A)The net export effect has a stronger effect on fiscal policy than monetary policy.
• B)Cuts in tax rates significantly increase the productive capacity of the economy over the historical averages.
• C)Excessive growth in the money supply over long periods leads to inflation.
• D)The federal funds rate is a more important monetary target than the money supply.

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Definitions:

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