Because monetarists believe that output is sensitive to changes in the money supply, they recommend that the money supply be allowed to grow at a steady and predictable rate.
Answer the following statement true (T) or false (F)
True
Steady growth of the money supply reduces uncertainty and allows for steady economic growth, ensuring that the growth in money demand is accompanied by an increasing money supply to finance an increasing number of transactions.
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If net exports is 100 and the private sector balance is 150, then the government sector balance is
A) -50. B) 50. C) 250. D) 0.
Pollution rights can be traded and are always efficient.
A. True B. False C. Uncertain
Command-and-control policies usually:
A. result in higher costs for firms when compared to pollution taxes. B. don't raise prices as much to consumers as do pollution taxes. C. result in less pollution being produced than when pollution taxes are used. D. result in lower costs for firms when compared to pollution taxes.
A decrease in the overall price level is
A. a price index. B. deflation. C. a recession. D. inflation.