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%.
Correct Answer:
Verified
Q16: _ is a condition of both inflation
Q17: In some countries, a key foreign currency
Q18: Economic growth is _.
A) not related to
Q19: The standard way of measuring _ is
Q20: The Fed, in interaction with banks and
Q22: During 1997/1998, with strong economic growth and
Q23: A "weak" dollar contributes to inflation, as
Q24: The Fed's policy necessarily represents trade-offs among
Q25: The Fed's policy beginning in 1983 was
Q26: Interestingly, in recent years, many central banks
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents