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:

Meeting Last

The final gathering or session in a series, often used to conclude discussions, finalize decisions, or mark the end of an event.

Expected

Regarded as likely to happen based on precedents or common beliefs.

Productive Meetings

Meetings that are effectively planned and managed, resulting in clear outcomes, decisions, or actions.

Planning

The process of making detailed proposals or decisions about future actions.