Monetarists Say That the Relationship Between the Amount of Money

question 32

Multiple Choice

Monetarists say that the relationship between the amount of money that households and businesses want to hold and the level of national output and income

• A) has decreased historically because of increased accessibility to credit.
• B) rises during recession and falls during periods of full employment.
• C) falls during recession and rises during periods of full employment.
• D) is relatively stable.

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Definitions:

Required Rate of Return

The minimum annual percentage earned by an investment that will entice individuals or companies to put money into a particular security or project.

Contribution Margin

Contribution margin is the amount by which sales revenue exceeds variable costs, indicating how much revenue contributes towards covering fixed costs and generating profit.

Production Constraint

Any factor that limits the output of a production process, such as limited machine capacity or shortages of materials or labor.

Constrained Resource

A limited resource that restricts an organization's ability to produce goods or services, affecting throughput and operational efficiency.