Most of the Pressure for a Monetary Growth Rule Has

question 205

Multiple Choice

Most of the pressure for a monetary growth rule has disappeared because since 1980

• A)the relationship between movements in the money supply and movements in real GDP and the price level have become much stronger.
• B)the relationship between movements in the money supply and movements in real GDP and the price level have become much weaker.
• C)the relationship between movements in interest rates and movements in real GDP and the price level have become much stronger.
• D)the relationship between movements in interest rates and movements in real GDP and the price level have become much weaker.

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Definitions:

ROE

Return on Equity, a financial ratio indicating the profitability of a corporation in relation to stockholders’ equity, showing how well the company uses investments to generate earnings growth.

EPS

Earnings Per Share, a company's profit divided by the number of outstanding shares of its common stock, indicating the company's profitability.

EBIT

Earnings Before Interest and Taxes, a measure of a company's profit that includes all incomes and expenses except interest and income tax expenses.

ROCE

Return on Capital Employed; a measure of a company's profitability in relation to its capital, indicating how efficiently capital is being utilized to generate profits.