Which of the Following Would Be Claimed by Individuals Who

question 56

Multiple Choice

Which of the following would be claimed by individuals who argue against interest rate targets for monetary policy?  

• A) that the necessary changes in money supply reinforce business cycles 
• B) that the necessary changes in money supply dampen expansions 
• C) that increased crowding out reduces private investment even more 
• D) that inflation will fall

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Definitions:

Withdrawals

Money or assets taken out from a business by its owner for personal use or from a bank account by the account holder.

Investments

Assets acquired with the goal of generating income or increasing in value over time.

Statement Of Owner's Equity

A financial statement detailing changes in the equity of a company's owner over a reporting period.

Capital Changes

Adjustments or alterations in the equity or ownership capital of a company, often due to investments, dividends, or profits.