Which of the Below Statements Is FALSE

question 42

Multiple Choice

Which of the below statements is FALSE?

• A) Monetarists claim that policy that is based on known rules of growth in key monetary aggregates sustains stability in the price level, and that such stability fosters long-run economic growth and employment.
• B) Monetarists believe that the money multiplier is basically steady, so that the link between reserves and the monetary aggregates can be identified.
• C) The changes in interest rates that may result from changes in money demand should be allowed to affect the policy on reserves.
• D) By 1982, the tight monetary policy had banished the worst of the inflation, which seemed to reach a bottom of about 3% to 4%.

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Definitions:

Maintenance Department

The division within a company responsible for maintaining equipment, buildings, and other assets to ensure operational efficiency.

Support Department

Units within an organization that provide essential services or support to the primary operations or production departments, but do not directly participate in profit generation.

Facility-Level Costs

are overhead costs that are not directly tied to production or volume, such as rent, insurance, and security for a factory.

Support Department

A division within an organization that provides essential services or support to production or primary operations departments.