According to the Monetarists, Which of the Following Is True

question 201

Multiple Choice

According to the monetarists, which of the following is true?

• A) Instability in the money supply is the primary cause of economic instability.
• B) A reduction in the money supply will cause consumers to increase spending.
• C) A reduction in the money supply will cause a proportional reduction in wages and prices, leaving output unchanged.
• D) A rapid growth rate of the money supply will lead to a rapid growth rate of real GDP.

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Definitions:

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Multidimensional Concept

An idea or theory that includes multiple aspects or factors, recognizing complexity and varied dimensions.

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