Econometric Models of the U.S.economy Generally Agree

question 4

Multiple Choice

Econometric models of the U.S.economy generally agree

• A)on the quantitative impact of monetary policy over a horizon of several years.
• B)that an increase in money growth will increase output in the short run.
• C)that an increase in money growth will decrease output in the short run.
• D)that an increase in money growth will decrease output in the long run.
• E) that "rational expectations" is the best way to generate policy forecasts.

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Definitions:

Multiply

To increase in number by a specific factor; in arithmetic, it is the operation of adding a number to itself a certain number of times.

Decimal

A figure that features a decimal point to signify a part of a whole.

Round

To approximate a number to a specified degree of significance, often to the nearest whole number.

Whole Number

A number without fractions or decimals; an integer.