A Factor Increasing the Popularity of Monetarism in the Late

question 154

Multiple Choice

A factor increasing the popularity of monetarism in the late 1970s was the

• A)ease with which the Fed controlled the money supply.
• B)excellent performance of the economy in the 1970s.
• C)the fear of budget deficits and growing federal debt.
• D)the predictable behavior of velocity until about 1980.

Understand the concept of opportunity cost in holding money and its calculation.

Recognize the relationship between interest rates and the quantity of money demanded.

Identify factors that affect the demand for and supply of money in the economy.

Understand the advantages of money as a store of value and its role in generating interest income.

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Definitions:

Right-Brained

A popularized concept suggesting that the right hemisphere of the brain is more involved in creative and intuitive processes.

Dendrites

The branched projections of a neuron that act to conduct the electrochemical stimulation received from other neural cells to the cell body, or soma.

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A learned ability to carry out a task with pre-determined results often within a given amount of time, energy, or both.

Anatomy

The branch of science concerned with the bodily structure of humans, animals, and other living organisms, especially as revealed by dissection and the separation of parts.