The relationship between M1 and economic activity during the mid-1980s was which of the following?
A)emphasized in guiding policy
B)of absolutely no importance
C)rather unstable
D)stable and predictable

Question

Quizplus · Accepted Answer

During the mid-1980s, the relationship between M1 and economic activity was rather unstable. This was due to various factors such as changes in economic policies, fluctuations in interest rates, and shifts in consumer spending patterns. As a result, policymakers had to constantly reassess the role of M1 in guiding policy decisions.

The Relationship Between M1 and Economic Activity During the Mid-1980s