Monetarists Argue That

question 119

Multiple Choice

Monetarists argue that

• A)The velocity of money is constant.
• B)Fiscal policy puts idle money balances to work,which reduces V.
• C)When there is a recession,people accumulate money balances,which increases V.
• D)The velocity of money increases as much as total spending falls so that MV remains constant.

---

Definitions:

Indirect Materials

Materials used in the production process but not directly traceable to a finished product, such as lubricants and cleaning supplies.

Advertising

The activity of promoting products or services to potential customers through various media channels.

Current Asset Items

Assets that are expected to be converted into cash, sold, or consumed within one year or the operating cycle, whichever is longer; includes cash, accounts receivable, and inventory.

Balance Sheet

A financial statement that provides a snapshot of a company's financial position at a specific point in time, showing assets, liabilities, and equity.