Most monetarists favor:
A. frequent changes in the growth rate of the money supply to avoid inflation.
B. placing the Federal Reserve under the Treasury.
C. a steady, gradual shrinkage of the money supply.
D. a constant increase in the money supply year after year equal to the potential annual growth rate in real GDP.
Answer: D
You might also like to view...
Which of the following would cause a change in the quantity demanded of a product?
A) a higher price B) a higher income C) expectations of future price increases D) All of the above are correct.
Under a gold standard, as trade takes place, the importing nation experiences a ________ and a(n) _________ in its money supply, while the exporting nation experiences the opposite.
A) gold outflow; contraction B) gold inflow; expansion C) gold outflow; expansion D) gold inflow; contraction
A production possibilities curve is plotted for a nation producing cotton and jute. Which of the following will cause a parallel rightward shift of the production possibilities curve?
A) An invention of a new fertilizer that increases cotton production by ten percent, without any effect on jute production B) An invention of a new fertilizer that increases jute production by five percent, without any effect on cotton production C) An invention of a new fertilizer that increases production of both cotton and jute by ten percent D) A two-times increase in the price of all cotton products and a three-times increase in the price of all jute products
A quasi-public good is similar to a public good in that one person's consumption of the quasi-public good does not reduce the amount available for everyone else
Indicate whether the statement is true or false