If the Economy's Real Output Is Growing by 2

question 66

Multiple Choice

If the economy's real output is growing by 2.5 percent a year, then in order to maintain price stability a monetarist would most likely recommend that money supply should be:

• A) Held constant
• B) Decreased by 1 percent a year
• C) Increased by 2.5 percent a year
• D) Increased by 7.5 percent a year

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Definitions:

Sternum

A long flat bone located in the center of the chest, which connects to the ribs via cartilage to form the front part of the rib cage.

Deep

Positioned far away from the surface of the body or from the point of reference.

Negative Feedback

A control system where a trigger leads to a contrary outcome to keep a regulated factor at its optimal state.