According to Monetarists, Which of the Following Would Be Most

question 131

Multiple Choice

According to monetarists, which of the following would be most important for the control of inflation?

• A) a steady increase in federal expenditures
• B) the imposition of price controls
• C) keeping the growth rate of the money supply low and steady
• D) a steady increase in the size of the budget deficit

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Definitions:

Industrial Regulation

A policy mechanism where government bodies set rules, standards, and procedures that businesses must follow to ensure fair competition, protect public interests, and prevent monopolistic practices.

Marginal Cost

The incremental cost incurred by producing an extra unit of a product or service.

Average Total Cost

The sum of all production costs divided by the quantity of output produced, including both fixed and variable costs.

Deregulation

The process of reducing or eliminating government oversight and rules in various industries to foster a more free-market environment.