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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Euphoric

A feeling of intense excitement and happiness, often beyond what is considered normal.

Irritated

A mild state of annoyance or discomfort, often resulting from a specific source of frustration or provocation.

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Damage to the spinal cord that results in a loss of function, such as mobility or feeling, below the site of the injury.

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The outward demonstration of feelings such as happiness, anger, or sadness through facial expressions, gestures, and vocal tones.