Which of the following statements is NOT true?
A) According to the monetarists, velocity and nominal GDP are relatively unchanged in the short run.
B) According to the quantity theory of money, an increase in money supply leads a proportionate increase in price level.
C) According to the monetarists, discretionary monetary policy is ineffective in stabilizing an economy.
D) According to the monetarists, optimal monetary policy is a slow, steady increase in money supply.
Correct Answer:
Verified
Q47: If the total expenditure in an economy
Q48: If the total expenditure in an economy
Q49: According to the monetarists, in the equation
Q50: According to the quantity theory of money,
Q51: According to the quantity theory of money,
Q53: Higher the interest rate, the _ the
Q54: The demand for money that arises from
Q55: All else equal, a higher interest rate
Q56: All else equal, a higher price level
Q57: All else equal, a lower price level
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