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:

Threshold

The level, point, or value above which something is true or will occur, and below which it is not or will not occur.

Educational Level

The highest degree or level of schooling completed by an individual or offered within an education system.

Threshold

The level, point, or value above which something is true or will happen and below which it is not or will not.

High-Productivity People

Individuals who consistently generate significant outputs or results in relation to the time and resources used, often contributing to economic growth.