In Recent Years,a Monetary Growth Rule Has Fallen Out of Favor

question 173

Multiple Choice

In recent years,a monetary growth rule has fallen out of favor because

• A)it is believed that active monetary policy destabilizes the economy and makes the business cycle worse.
• B)the growth rate of GDP has been highly unstable.
• C)the close relationship between movements in M1 and movements in real GDP has become weaker.
• D)the growth rate of M1 has become more stable.

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Definitions:

Landslide

A general term for the rapid downslope movement of soil, sediment, bedrock, or a mixture of these; also the material or landform formed by this process.

Global Climate

The average weather patterns that are observed over long periods, across the entire planet, encompassing a complex system influenced by solar radiation, the atmosphere, oceans, and landmasses.

Ice Ages

Periods of long-term reduction in the temperature of Earth's surface and atmosphere, resulting in the expansion of continental and polar ice sheets.

Continents

Large landmasses on Earth's surface, conventionally counted as seven: Africa, Antarctica, Asia, Australia, Europe, North America, and South America.