The Instability of the Money-Demand Function Led Central Banks in the 1980s

question 44

Multiple Choice

The instability of the money-demand function led central banks in the 1980s to:

• A) take actions to reduce the instability of money demand.
• B) increase the instability of the money supply.
• C) prohibit the further development of near money.
• D) abandon the money supply as a target for monetary policy.

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Definitions:

Crohn's Disease

A chronic inflammatory bowel disease that affects the lining of the digestive tract, causing pain, severe diarrhea, fatigue, weight loss and malnutrition.

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Experiencing or relating to shortness of breath or difficulty in breathing, often a symptom in various health conditions.

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A measure of the balance between acidity and alkalinity in the body, which is crucial for maintaining optimal physiological function.

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