In Monetarist Business Cycle Theory,the Factor Leading to a Business

question 348

Multiple Choice

In monetarist business cycle theory,the factor leading to a business cycle is changes in

• A) consumer spending.
• B) investment spending.
• C) the growth rate of the quantity of money.
• D) net exports.

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Definitions:

Treasury Bills

Short-term government securities issued at a discount from the face value, maturing in one year or less, used as a tool for managing national finance.

U.S. Treasury

The federal department responsible for managing government revenue, issuing currency, and executing fiscal policy in the United States.

Money Market Instrument

Short-term financial instruments that include treasury bills, commercial paper, and certificates of deposit, typically with high liquidity and low risk.

Government Bonds

Bonds issued by the U.S. Department of the Treasury.