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Because Monetarists Believe That Output Is Sensitive to Changes in the Money

question 76

True/False

Because monetarists believe that output is sensitive to changes in the money supply,they recommend that the money supply be allowed to grow at a steady and predictable rate.
Steady growth of the money supply reduces uncertainty and allows for steady economic growth,ensuring that the growth in money demand is accompanied by an increasing money supply to finance an increasing number of transactions.

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Definitions:

Multiple Intelligences

A theory suggesting that human intelligence is composed of a variety of abilities rather than a single all-encompassing one.

Sternberg

Refers to Robert Sternberg, a psychologist known for his theory on love and intelligence, which includes components such as the triangular theory of love and the triarchic theory of intelligence.

Gardner

Howard Gardner, an American developmental psychologist best known for his theory of multiple intelligences, which suggests that individuals have various distinct types of intelligence.

Creative People

Individuals characterized by their ability to produce work that is both novel and appropriate in the context of its use.

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