During the 1970s, the relationship between M1 and the level of economic activity was
A)stable and predictable.
B)erratic and unpredictable.
C)unknown.
D)None of the above is correct.

Question

Quizplus · Accepted Answer

During the 1970s, the relationship between M1 (which includes cash and checking deposits) and the level of economic activity was considered stable and predictable, allowing economists and policymakers to use M1 as a reliable indicator of economic conditions.

During the 1970s, the Relationship Between M1 and the Level