Monetarists Believe All of the Following Except

question 72

Multiple Choice

Monetarists believe all of the following except:

• A) fluctuations in the money supply are responsible for most large fluctuations in the economy.
• B) the Fed should keep the money supply growing at a steady rate.
• C) slow and steady growth of the money supply would yield stable output, employment, and prices.
• D) the Fed should adjust the money supply to adjust to various shocks to the economy.

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Definitions:

Equity Mutual Fund

A corporation that pools the funds of investors, including small investors, and uses them to purchase a bundle of stocks.

U.S. Households

Living arrangements in the United States that include all the people who occupy a housing unit, such as families, roommates, or individuals living alone.

Own Stock

Refers to the possession of shares in a company, indicating partial ownership.

Corporate Bonds

Debt securities issued by corporations to raise capital, with promise to repay the principal amount along with specified interest rates over a period.