Monetarists Contend That

question 82

Multiple Choice

Monetarists contend that

• A)monetary policy affects aggregate demand solely through investment.
• B)monetary policy may affect aggregate demand through many channels.
• C)a weak link between nominal interest rates and investment spending implies monetary policy ineffectiveness.
• D)monetary policy affects aggregate demand solely through consumption.

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Definitions:

Financial Resources

Financial resources are the funds that are available to a business for spending in the form of cash, liquid securities, and credit lines.

Staircase Analysis

A method of analyzing the incremental steps a company must take to reach a higher level of performance or goal.

Strategic Business Units

Autonomous divisions within large companies that focus on specific market segments or product lines and have their own strategy and objectives.

Marketers

Professionals responsible for creating and executing strategies to promote and sell products or services to target consumers.