A Fixed Money-Supply Rule Will Have the Greatest Stabilizing Effect

question 145

Multiple Choice

A fixed money-supply rule will have the greatest stabilizing effect on output when

• A)money demand is unstable and commodity demand is stable.
• B)both money and commodity demand are unstable.
• C)both money demand and commodity demand are stable.
• D)the velocity of money is unstable.

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Definitions:

Involuntary Conformity

The act of altering one's behavior or beliefs due to real or imagined pressure from others, without conscious desire to make such changes.

Self-Managed Teams

Groups of employees tasked with managing their own operations and responsibilities without traditional direct supervision.

Managerial Tasks

Activities or responsibilities that managers are required to perform, including planning, organizing, leading, and controlling.

Indirect Pressure

A subtle form of influence where suggestions rather than explicit demands are used to guide behavior.