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According to the Monetarist Theory of Macroeconomic Policy

Question 56

Multiple Choice

According to the monetarist theory of macroeconomic policy,


A) prices drop when there is too much money chasing too few goods.
B) inflation should be avoided at all costs for the overall good of the economy.
C) interest rates should be kept low at all times to encourage investment.
D) a recession can result when there is not enough money in the system.

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