The Monetary Policy Most Likely to Be Favored by Monetarists

question 43

Multiple Choice

The monetary policy most likely to be favored by monetarists is

• A) a constant (nongrowing)money supply.
• B) frequent discretionary changes in the money growth rate.
• C) a constant and slow rate of monetary growth.
• D) vigorous monetary expansion during recessions.
• E) a steadily increasing rate of monetary growth.

---

Definitions:

Rate of Unemployment

The fraction of the labor force that is in a state of unemployment but is engaged in seeking employment.

Mainstream Economists

Economists who adhere to widely accepted theories and models within the field, focusing on the analysis and understanding of economic phenomena.

Persistent Inflation

Sustained increase in the general price level of goods and services in an economy over a period of time.

Excessive Government Spending

The situation where government expenditures significantly exceed revenue, leading to budget deficits and potential economic issues.