Which of the Following Statements About Monetary Rules Is CORRECT

question 122

Multiple Choice

Which of the following statements about monetary rules is CORRECT?

• A) Monetary rules prevent policymakers from making things worse when there is a large or persistent shock to the economy.
• B) Monetary rules assume the economy is inherently stable.
• C) Advocates of monetary rules advise increasing the money supply during recessions and decreasing the money supply to fight inflation.
• D) Monetary rules require frequent changes in the money supply.

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Definitions:

Thorndike And Skinner

Scholars in the field of psychology known for their contributions to behaviorism and learning theories.

Instrumental Conditioning

A learning process through which the strength of a behavior is modified by reward or punishment.

Biological Causes

Refers to the physiological and genetic factors contributing to the development of diseases or health conditions.

Abnormality

A deviation from what is considered normal or typical, often used in a psychological or medical context to describe behaviors or conditions.