Which of the Following Statements Is Least Likely to Be

question 94

Multiple Choice

Which of the following statements is least likely to be true?

• A) By targeting the growth in the money supply, the government will be more successful in keeping inflation low if the demand for money becomes volatile.
• B) Targeting the growth in the money supply will be more successful in keeping inflation low if the velocity of money is stable.
• C) The demand for money influences the velocity of money.
• D) A rules-based approach to monetary policy will be less effective when the demand for money is volatile.

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Definitions:

Expected Activity

The projected level of operation or production, often used in budgeting and planning processes.

Clerical Activity

Routine office tasks and procedures such as filing, typing, and scheduling, which support the administrative functions of an organization.

Purchase Orders

Written authorization for a supplier to deliver a specified quantity of goods at a stated price.

Batch-Level Activity

Batch-level activity pertains to the costs and operations associated with processing groups of units or products together rather than individually.