Mainstream Economists Contend That a Policy Rule Based on the Equation

question 230

Multiple Choice

Mainstream economists contend that a policy rule based on the equation of exchange breaks down because

• A) there is a tight relationship between the money supply and nominal GDP.
• B) velocity is more variable and unpredictable than expected.
• C) the money supply increases at a constant, not a variable, rate.
• D) nominal GDP is directly related to changes in the price level.

---

Definitions:

Ethical Perspective

The viewpoint from which an individual or group evaluates actions and decisions based on moral principles and values.

Millennials

A demographic group succeeding Generation X, generally identified as individuals born between the early 1980s and the late 1990s.

Values Of Workers

Speaks to the core beliefs and principles that guide an employee's behaviors and decisions in the workplace.

Ethical Perspective

An individual's or group's viewpoint on what constitutes morally right or wrong behavior, often influenced by personal, cultural, or societal values.