The ___________ School Holds That All Inflations Are Caused by Excessive

question 155

Short Answer

The ___________ school holds that all inflations are caused by excessive growth in the money supply and that monetary policy affects GDP directly.

---

Definitions:

Income-Consumption Curve

A graph that shows how a consumer's optimal bundle of goods changes as their income changes, all else being constant.

Marginal Utility

The change in satisfaction or utility gained from consuming an additional unit of a good or service.

Utility Maximizing

The process by which individuals select the mix of goods and services that maximizes their satisfaction or utility, given their budget constraint.

Elastic Demand

A situation where the demand for a product is sensitive to price changes, showing a significant change in quantity demanded when prices fluctuate.