Which of the Following Statements Is Correct

question 261

Multiple Choice

Which of the following statements is correct?

• A)Monetarists believe that the economy is inherently unstable.
• B)Monetarists believe that policy activism is one of the principal causes of economic instability.
• C)Although monetarists are basically non-interventionist,they are in favor of activist monetary policy.
• D)Monetarists argue that changes in M1 affect GDP only through changes in interest rates.
• E)Monetarists believe that discretionary monetary policy is essential to successful economic stabilization efforts.

---

Definitions:

Total Debt

The sum of all liabilities, both current and long-term, that a company owes to creditors.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects receivables or the credit it extends to customers.

Average Collection Period

A financial metric that measures the average number of days it takes for a company to collect payments from its customers.

Accounts Receivable

Money owed to a business by its customers for goods or services that have been delivered but not yet paid for.