Monetarists Reject Using Discretionary Monetary Policy as an Effective Stabilization

question 73

Multiple Choice

Monetarists reject using discretionary monetary policy as an effective stabilization tool because they believe:

• A) if the money supply grows at a rate equal to the economy's long-run rate of economic growth, then the economy will be unstable.
• B) that changes in the money stock do not affect output or prices.
• C) the Fed will miss its money supply targets and make the economy worse.
• D) monetary policy can stimulate aggregate demand, but it cannot affect inflation.

Understand the time frames applicable to HR forecasting.

Identify key skills critical to the HR planning function.

Recognize the importance of designated groups and high-demand qualifications in HR forecasting.

Comprehend the role of firm strategy and environmental scanning in acquiring necessary KSAOs for organizational success.

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Definitions:

Rational Expectationist

An economist who believes that individuals make predictions about the future based on all available information, adjusting their behavior accordingly.

Supply-side

An economic theory that emphasizes the role of supply in fostering economic growth by reducing taxes and decreasing regulation, with the intent of increasing production.

Monetarism

A school of economics that places paramount importance on money as the key determinant of the level of prices, income, and employment.

Velocity of Circulation

The rate at which money is exchanged in an economy, often used to represent the activity level in the financial system.