In the Monetarist View, the Money Supply Affects the Economy

question 87

Multiple Choice

In the monetarist view, the money supply affects the economy

• A)through investment spending and government spending.
• B)indirectly through interest rates.
• C)directly, apart from interest rates.
• D)by altering the size of the money multiplier.

---

Definitions:

Organ

A group of tissues in a living organism that have been adapted to perform a specific function, such as the heart or liver.

Cavity

An empty or hollow space within the body or one of its organs, often referring to areas like the abdominal cavity.

Blood Vessels

Tubular structures in the body responsible for transporting blood to and from the heart and throughout the body, including arteries, veins, and capillaries.

Striated Involuntary

Relating to muscle tissue that is marked by a pattern of stripes or striations and is not under conscious control, such as the heart muscle.