Which of the Following Is True

question 93

Multiple Choice

Which of the following is true?

• A)When increased government purchases or expansionary monetary policy does give the economy a boost, no one knows precisely how long it will take to do so.
• B)Given the difficulties of timing stabilization policy, an expansionary monetary policy intended to reduce the severity of a recession may instead add inflationary pressures to an economy that is already overheating.
• C)If velocity changes, but it moves in a fairly predictable pattern, the connection between money supply and GDP is still fairly predictable.
• D)Economic advisors, even using sophisticated econometric models, cannot forecast what economy will do in the future with a high degree of accuracy.
• E)All of the above are true.

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Definitions:

Information Processing

A cognitive approach that likens the mind to a computer, focusing on how people encode, store, and retrieve information.

Intellectual Ability

The capacity to think abstractly, reason, understand complex ideas, learn quickly, and solve problems.

Intelligence Measures

Methods or tools used to assess an individual's cognitive capabilities and intellectual potential.

Language Development

The method through which young children learn to comprehend and express language in their early years.