Monetarists Regard the Rate of Growth of the Money Supply

question 22

Multiple Choice

Monetarists regard the rate of growth of the money supply as the principal determinant of nominal GDP.By nominal GDP,they mean GDP

• A) unadjusted for changes in the price level.
• B) measured in constant dollars.
• C) excluding the government.
• D) divided by the money supply.
• E) corrected for the velocity of circulation.

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Definitions:

Gasoline Prices

The cost per unit volume of gasoline, which fluctuates based on factors like crude oil prices, taxes, demand, and supply.

Distribute Products

Distributing products involves the process of making goods available to consumers through various channels, including retail locations, online platforms, and distribution centers, ensuring accessibility to the target market.

Diseconomies of Scale

Occur when a company or business grows so large that the costs per unit increase, leading to decreased efficiency.

Economies of Scale

The cost advantage that arises with increased output of a product due to spreading fixed costs over more units of production.