Which of the Following Statements Generates the Greatest Amount of Disagreement

question 4

Multiple Choice

Which of the following statements generates the greatest amount of disagreement among economists?

• A)Increases in the money supply shift aggregate demand to the right.
• B)In the long run,increases in the money supply increase prices,but not output.
• C)Recessions are associated with decreases in consumption,investment,and employment.
• D)Government should use fiscal policy to try to stabilize the economy.

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Definitions:

Long-Term Investments

Investments in stocks, bonds, or other assets that a company intends to hold for more than one fiscal year.

Interest Revenue

Income earned from lending money or investing in interest-bearing financial instruments.

Free Cash Flow

Cash Flows from Operating Activities less Dividends less Capital Expenditures.

Operating Activities

The primary revenue-producing activities of an entity and other activities that are not investing or financing activities.