The monetary policy most likely to be favored by monetarists is
A) a constant (nongrowing) money supply.
B) frequent discretionary changes in the money growth rate.
C) a constant and slow rate of monetary growth.
D) vigorous monetary expansion during recessions.
E) a steadily increasing rate of monetary growth.
C
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For a number of years, General Motors used a pricing strategy designed to maintain at least 40 percent of the American car market. Does this strategy suggest that GM was maximizing profits or pursuing an alternative strategy?
What will be an ideal response?
The production possibilities curve can shift inward when
A) production increases. B) employment increases. C) the stock of productive capital rises. D) a country experiences a natural disaster.
In a properly functioning economy, money costs approximate opportunity costs
a. True b. False Indicate whether the statement is true or false
In the classical model, the aggregate supply curve is
A. a horizontal line. B. a vertical line. C. an upward sloping line. D. a combination of horizontal, upward sloping, and vertical lines.