Monetarists Take the Policy Position That the Supply of Money

question 236

Multiple Choice

Monetarists take the policy position that the supply of money should be

• A)increased at a constant rate each year.
• B)decreased during recession and increased during inflation.
• C)held constant over time.
• D)increased during recession and decreased during inflation.

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Definitions:

Marginal Costs

The amount spent to produce a further unit of a good or service.

Deadweight Loss

A loss of economic efficiency that can occur when equilibrium for a good or service is not achieved or is not achievable.

Coefficient Of Monopsony

A measure indicating the degree of market power held by a single buyer in a market.

Elasticity Of Supply

A measure of how much the quantity supplied of a good responds to a change in the price of that good, with higher elasticity indicating a greater response.