Why Have Economists Abandoned the Use of Money-Growth Rules in the United

question 1

Multiple Choice

Why have economists abandoned the use of money-growth rules in the United States?

• A)Because the Fed can no longer control the money supply
• B)Because the velocity growth rate has been too stable
• C)Because of instability in money demand
• D)Because money-growth rules are overly activist

---

Definitions:

Job Order Cost Accounting Systems

An accounting system that accumulates costs individually for each job. It is used when products are made based on specific orders.

Company's Efficiency

A measure of how effectively a company uses its resources to produce outputs, often assessed through ratios such as revenue per employee or output per hour.

Activity-Based Costing

A costing method that assigns costs to products or services based on the activities and resources that go into producing them.

Accumulating

The process of gathering or collecting items over a period of time.