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.

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Definitions:

Industrial Revolution

A period of major industrialization that took place during the late 1700s and early 1800s, marked by significant technological advancements and changes in economic practices.

Nuclear Family

A household consisting of a parent or parents and their dependent children, regarded as a basic social unit.

Extended Family

An extended family is a familial grouping that extends beyond the immediate family to include grandparents, aunts, uncles, and other relatives.

Structural Functionalist

A perspective in sociology that views society as a complex system whose parts work together to promote solidarity and stability.