The Monetary Rule Is the View of The

question 27

Multiple Choice

The monetary rule is the view of the:

• A) Keynesians that monetary policy is most important.
• B) Monetarists that monetary policy is most important.
• C) Classical economists that monetary policy is most important.
• D) Monetarists that the Fed should expand the money supply at a constant rate.

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Definitions:

Finance Company

A business that makes loans to individuals and companies, aside from banks and other traditional lenders.

Service Fee

A charge added to a customer's bill for the provision of services by a company or professional.

ROEs

Return on Equity, a measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested.

Total Assets Turnover

A financial ratio that measures how effectively a company uses its total assets to generate sales revenue.