Monetarists' Preference for Reduced-Form Models Is Based on Their Belief

question 2

Multiple Choice

Monetarists' preference for reduced-form models is based on their belief that

• A)reverse causation is a problem.
• B)structural models may understate money's effect on economic activity.
• C)money supply changes are always endogenous.
• D)monetary policy affects only investment spending.

---

Definitions:

Questionnaire

A set of written questions used for gathering information from respondents.

Respondents

Individuals or entities that provide answers or responses to surveys, questionnaires, interviews, or other forms of inquiry.

Random Sample

A subset of individuals chosen from a larger set, or population, where each individual has an equal chance of being selected.

Equal Chance

The principle of providing everyone with the same opportunity without discrimination or preference.