Monetarists Believe All of the Following Except

question 67

Multiple Choice

Monetarists believe all of the following except:

• A)fluctuations in the money supply are responsible for most fluctuations in the economy.
• B)the Bank of Canada should keep the money supply growing at a steady rate.
• C)slow and steady growth of the money supply would yield stable output, employment, and prices.
• D)the Bank of Canada should adjust the money supply to adjust to various shocks to the economy.

Distinguish between the concepts of risk and return.

Understand the impact of standard deviation on investment risk.

Comprehend market efficiency and the implications for stock pricing and investment strategy.

Recognize the patterns of inflation over time concerning various investment types.

---

Definitions:

Merchandise

Merchandise encompasses the goods and products that a retail business purchases to then sell to its customers.

Lower of Cost

An accounting principle requiring that inventory be recorded at the lower of its historical cost or market value if the market value drops below cost.

Net Realizable Value

The estimated selling price in the ordinary course of business, minus the estimated costs of completion and the estimated costs necessary to make the sale.

Selling Price

The amount of money a buyer pays to purchase a product or service from a seller.