When Something Happens to the Economy, Monetarists Ask Two Questions

question 74

Multiple Choice

When something happens to the economy, monetarists ask two questions:

• A)What does this do to government spending, and what does it do to tax revenues?
• B)What does this do to real GDP, and what does it do to the price level?
• C)What does this do to investment spending, and what does it do to net exports?
• D)What does this do to the money supply, and what does it do to velocity?

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Definitions:

Withdrawal

The process of retracting or turning inward, often used to describe the physiological and psychological symptoms experienced when discontinuing a substance upon which one has become dependent.

Sodium Pentothal

A barbiturate drug historically used as a sedative and famously referred to as a "truth serum" in the context of interrogation.

Barbiturate

A class of drugs that are used as sedatives and hypnotics, which can depress the central nervous system, leading to effects ranging from mild sedation to total anesthesia.

Barbiturates

A class of drugs that are used as sedatives and hypnotics. They can depress the central nervous system, leading to effects ranging from mild sedation to total anesthesia.