Which of the Following Is a Belief of the Monetarists

question 51

Multiple Choice

Which of the following is a belief of the monetarists?

• A) They think the Great Depression was made worse by poor conduct of monetary policy.
• B) They believe monetary policy is transmitted to the economy only through its effect on interest rates and planned investment.
• C) They believe that the interest-investment curve is horizontal.
• D) They believe the crowding-out effect is insignificant.

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Definitions:

Scarce Resources

Resources that are limited in supply and cannot fulfill all human wants and needs completely, leading to the necessity of choices and priorities in their use.

Marginal Rate

Often refers to the marginal tax rate, which is the tax rate applied to an additional dollar of income.

Transformation

In an economic context, it refers to the process of changing inputs into outputs, often related to the production process in industries or economies.

Resources

Assets, materials, and inputs used by organizations or economies to produce goods and services.