Which Statement About Monetary Rules Is Correct

question 249

Multiple Choice

Which statement about monetary rules is correct?

• A) Monetary rules prevent policymakers from using monetary tools.
• B) Monetary rules assume the economy is inherently stable.
• C) Advocates of monetary rules advise increasing the money supply during recessions and decreasing the money supply to fight inflation.
• D) Monetary rules require frequent changes in the money supply.

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Definitions:

Sales Dollar

A measure of the revenue generated from the sale of goods or services, expressed in dollar amounts.

Revenue Accounts

Accounts that record the income a company generates from its business activities.

Credit Balances

Balances within accounts that indicate the amount owed to a creditor; commonly found in liability and equity accounts.

Stockholders' Equity

Shareholders' equity in a corporation, defined by the excess of asset value over the amount of liabilities.