With a Monetary Growth Rule as Proposed by the Monetarists

question 243

Multiple Choice

With a monetary growth rule as proposed by the monetarists, during a recession the rate of growth of the money supply would

• A)decrease at the same rate as the employment/population ratio.
• B)increase at the same rate as the unemployment rate.
• C)not change.
• D)decrease at the same rate as real GDP.
• E)increase at the same rate as inflation.

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Definitions:

Top-to-bottom Processing

Cognitive processing that starts with the formulation of the perceptual hypothesis about a stimulus and works downwards to finer detail.

Reversible Figures

Visual illusions or images that can be perceived in more than one way, revealing cognitive processes involved in visual perception.

Figure and Ground

A principle in gestalt psychology that refers to the tendency of the perceptual system to simplify a scene into the main object that we focus on (figure) and everything else that forms the background (ground).

Gestalt Principle

A psychological theory suggesting that individuals perceive objects as whole systems rather than the sum of their parts.