Monetarists Believe All of the Following Except That ________

question 82

Multiple Choice

Monetarists believe all of the following except that ________.

• A) active government policies are required to restore the economy to full employment
• B) the Bank of Canada should adopt and follow a money growth rule
• C) the self-correcting mechanism works quickly because wages are sufficiently flexible
• D) the aggregate supply curve shifts quickly to restore the economy to the natural rate of unemployment

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Definitions:

Possessory Interest

A right or interest in property that allows the holder physical control or occupancy of the property.

National Bank

A type of bank chartered by the federal government and, among other powers, has the ability to issue notes that serve as currency.

Assigned Right

A right that has been transferred from one party (the assignor) to another (the assignee), typically involving rights to receive payments or benefits.

Holder In Due Course

A person who has acquired a negotiable instrument in a legitimate manner and has rights to enforce it free of certain defenses.