In the Monetarist Business Cycle Theory, Decreasing the Growth Rate

question 92

Multiple Choice

In the monetarist business cycle theory, decreasing the growth rate of the quantity of money ________ and increasing the growth rate of the quantity of money ________.

• A) increases real GDP; decreases the inflation rate
• B) decreases real GDP; decreases the inflation rate
• C) causes the economy to enter a recession; causes the economy to enter an expansion
• D) causes the economy to enter an expansion; causes the economy to enter a recession

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