Which of the Following Characterizes the Monetarist Viewpoint

question 101

Multiple Choice

Which of the following characterizes the Monetarist viewpoint?

• A) They believe that money can never affect investment.
• B) They believe that monetary policy is transmitted to the economy only through its effects on the interest rate and investment.
• C) Both a and b are part of the debate.
• D) Neither a nor b are part of the debate.

---

Definitions:

Deferred Tax Asset

A tax benefit that arises from temporary differences between the tax and accounting treatment of assets and liabilities, to be utilized in future periods.

Income Taxes Payable

This account reflects the amount of income taxes a company owes to the government but has not yet paid, representing a liability on the balance sheet.

Income Tax Expense

The cost incurred by businesses or individuals due to earnings, calculated according to government tax rates and laws.

Pretax Financial Income

The income of a company before taxes have been deducted, commonly used in the context of reporting and financial analysis.