Proponents of the Monetarist Approach to Economic Stabilization Think That

question 298

Multiple Choice

Proponents of the monetarist approach to economic stabilization think that the growth of the money supply should be approximately equal to

• A)the prime rate.
• B)the long-term average growth of real output.
• C)the real interest rate.
• D)the growth of federal expenditures.
• E)the growth of the federal budget.

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Definitions:

Certain Income

Income that is guaranteed or known, without any risk of fluctuation or loss.

Uncertain Income

Income that is not guaranteed and can vary significantly from period to period, often depending on factors like market demand or job security.

Marginal Utility

The bonus utility or pleasure experienced by someone when consuming another unit of a given good or service.

Risk-averse

A description of an individual's or entity's preference for avoiding loss over making a gain.