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:

Countable Values

Describes a set of values that can be counted, implying the set is finite or its members can be mapped to a subset of the natural numbers.

Success Occurrence

A term referring to the incidence or event in which a desired outcome or goal is achieved.

Random Variable

A mathematical variable with numerical outputs originating from random incidents.

Major Organic Product

The major organic product is the primary substance produced in a chemical reaction involving organic compounds, usually present in the largest amount compared to other products.