Which of the Following Statements Is Least Likely to Be

question 73

Multiple Choice

Which of the following statements is least likely to be true?

• A)By targeting the growth in the money supply, the government will be more successful in keeping inflation low if the demand for money becomes volatile.
• B)Targeting the growth in the money supply will be more successful in keeping inflation low if the velocity of money is stable.
• C)The demand for money influences the velocity of money.
• D)A rules-based approach to monetary policy will be less effective when the demand for money is volatile.
• E)A rules-based approach to monetary policy will be less effective when the velocity of money is volatile.

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Definitions:

Incentive System

An incentive system is a business tool that uses rewards and penalties to motivate employees to achieve specific objectives and improve performance.

Employment Stability

The assurance of consistent work and income for employees, contributing to job satisfaction and loyalty.

Follow Demand

Adapting production and inventory levels to meet current demand trends to minimize surplus and shortages.

Keep Demand

Strategies or practices employed to maintain or increase the desire for products or services among consumers or clients.