According to Monetarists,which of the Following Would Most Likely Eliminate

question 4

Multiple Choice

According to monetarists,which of the following would most likely eliminate inflation?

• A)a steady increase in federal expenditures at an annual rate of approximately 3 percent
• B)indexing of wages,taxes,and pensions to the rate of inflation
• C)a steady expansion in the money supply at a rate no greater than the long-run growth of real output
• D)a steady 3 percent increase in the size of the budget deficit

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Definitions:

Promissory Note

A written promise to pay a specified amount of money to a certain entity on demand or at a fixed or determinable future time.

Future Date

A specified day in the future, often related to scheduling events, deadlines, or financial transactions.

Maturity Date

The date on which a debt instrument becomes due and principal and interest payments must be paid.

Bank Credit Card

A card issued by a bank that allows users to purchase goods or services on credit, subject to repayment terms and possibly interest.