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:

Procedural Memories

Memories of how to perform certain skills and actions, such as riding a bike or tying shoelaces, which are often recalled unconsciously.

New Skills

Abilities or proficiencies acquired through practice, training, or learning that were not previously possessed by an individual.

New Words

Lexical items that have been recently created or entered into a language.

Procedural Memories

Memory of how to perform tasks, such as riding a bike or typing, that are done automatically without conscious thought.