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Which of the Below Statements Is FALSE

Question 21

Multiple Choice

Which of the below statements is FALSE?


A) Monetarists claim that policy that is based on known rules of growth in key monetary aggregates sustains stability in the price level, and that such stability fosters long-run economic growth and employment.
B) Monetarists believe that the money multiplier is basically steady, so that the link between reserves and the monetary aggregates can be identified.
C) The changes in interest rates that may result from changes in money demand should be allowed to affect the policy on reserves.
D) By 1982, the tight monetary policy had banished the worst of the inflation, which seemed to reach a bottom of about 3% to 4%.

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