The Monetarists' Prescription for Monetary Policy Is Called the "Monetary

question 301

Multiple Choice

The monetarists' prescription for monetary policy is called the "monetary rule." The monetary rule means that

• A)monetary policy does not have an impact on the economy until 6 to 9 months after the money supply is changed.
• B)expansionary fiscal policy should be accompanied by an easy monetary policy.
• C)the annual rate of increase in the money supply should be equal to the long-term increase in the price level.
• D)the rate of increase in the money supply should be slow and steady;for price stability it should equal the potential annual growth rate of real GDP.

Understand the implications of historical returns data on future investment decisions.

Recognize the relationship between securities' risk levels and expected returns.

Understand the concept and definition of simulation.

Comprehend how Monte Carlo simulation utilizes random numbers.

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Definitions:

Mitosis

A process of cell division in eukaryotic cells that results in two genetically identical daughter cells from a single parent cell.

Sperm

A male reproductive cell or gamete that can fertilize an egg cell.

Eggs

The female reproductive cells in animals and plants; in animals, often enclosed in a protective shell.

Locations

Specified places or positions typically described by their geographical situation or coordinates.