Under the Monetary Growth Rule Proposed by the Monetarists,the Money

question 274

Multiple Choice

Under the monetary growth rule proposed by the monetarists,the money supply would grow each year at a constant rate equal to the long-run rate of growth of

• A)inflation.
• B)real GDP.
• C)interest rates.
• D)employment.

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Definitions:

Per Capita Income

The average income earned per person in a given area in a specified year.

School Enrollment

The process of registering or entering students into a formal educational institution or program.

National Income

Total income earned by resource suppliers for their contributions to gross domestic product plus taxes on production and imports; the sum of wages and salaries, rent, interest, profit, proprietors’ income, and such taxes.