According to monetarists:
A) changes in the money supply are the primary cause of changes in the price level
B) a contractionary monetary policy will lower interest rates and thereby tend to overstimulate the economy
C) changes in the velocity of money are more important than changes in the money supply in causing the price level to change
D) the supply of money changes in response to changes in real output and the price level
E) central banks should be given complete control over the conduct of monetary policy
Correct Answer:
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Q37: Q38: Q39: Consider the following table Q40: If the money supply is reduced,we would Q41: Suppose that a member of the public Q43: Assume that the banking system has deposits Q44: In order to determine the velocity of Q45: The monetarist view of discretionary monetary policy Q46: If the reserve ratio were 100 percent,the Q47: If chartered banks lower their reserve ratio:
A)they
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