Which Monetarist Idea Has Been Absorbed into Mainstream Macroeconomics

question 48

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:

African Past

The historical timeline and events that define the continent of Africa, including its cultures, civilizations, and peoples.

Antebellum Period

A term referring to the time in American history before the Civil War, particularly emphasizing the cultural and economic aspects of the southern states.

Institution Of Slavery

A legalized system in which individuals are owned by others, deprived of personal freedom, and forced to work without wages.

Slave Narratives

First-hand accounts and autobiographies written or narrated by former slaves, documenting their experiences and the conditions of slavery in history.