Which of the Following Statements About Monetarism Is TRUE

question 10

Multiple Choice

Which of the following statements about monetarism is TRUE?

• A) It argues for the deregulation of the money supply.
• B) It believes that too much money in circulation leads to high inflation.
• C) It believes that too much money in circulation creates deflationary pressures on the economy.
• D) It is based on the belief that discretionary spending by the government is necessary for a healthy economy.
• E) It advocates cutting taxes and deregulating business to stimulate the economy.

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The psychological phenomenon by which people tend to develop a preference for things merely because they are familiar with them.

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The negative physical and psychological outcomes that can result from feelings of loneliness or social isolation.

Proximity Effect

A phenomenon in which individuals are more likely to feel attracted to or form social bonds with those who are physically closer to them.

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