According to monetarists,
a. businesses and households are the primary source of instability in the economy.
b. the Federal Reserve causes instability in the economy primarily by allowing instability in the money demand that determines the level of economic activity.
c. the government can stabilize the economy by interfering with the normal misadjustment mechanisms in the private sector.
d. All of the above
e. None of the above
E
You might also like to view...
Use the following graph for the milk market to answer the question below. 
In this market, the equilibrium price is ________ and equilibrium quantity is ________
A. $1.50 per gallon; 28 million gallons. B. $28 per gallon; 150 million gallons. C. $1.00 per gallon; 35 million gallons. D. $1.50 per gallon; 30 million gallons.
Given the proportion of a consumer’s income spent on various goods, the demand for is likely to be the most price inelastic.
A cooperative equilibrium results when firms
A) choose a strategy by random chance. B) choose the best strategy regardless of what other players do. C) choose the strategy that minimizes the payoff to other players. D) choose the strategy that maximizes the total game payoff.
If the multiplier is 4, equilibrium real GDP is $600 billion, and investment is $25 billion, what will happen if investment increases to $30 billion? Real GDP will:
a. increase to $605 billion b. decrease to $595 billion c. increase to $620 billion d. increase to $624 billion e. decrease to $580 billion