According to the Tenets of Monetary Theory, Which of the Following

question 53

Multiple Choice

According to the tenets of monetary theory, which of the following is a prescription for reducing inflation?

• A) If less money is available, price increases will slow and the inflationary spiral will end.
• B) Credit can be eased by lowering interest rates, thus allowing the supply of money to grow quickly.
• C) Increased federal spending will spur economic expansion, reduce unemployment, and increase personal spending.
• D) Reduced federal taxes will give consumers more buying power.

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Definitions:

Single Parents

Individuals who are raising children without the involvement of the other parent in the home.

Poverty

The state of having insufficient financial resources or material possessions for a minimum standard of living.

Occupation

A person's principal work or business, especially as a means of earning a living; a profession or job.

Income

Monetary gain derived from work, investments, or social benefits, serving as a measure of economic well-being and resource availability for individuals or households.