Solved

According to the Monetarist Point of View

Question 47

Multiple Choice

According to the monetarist point of view


A) to avoid inflation,the Federal Reserve should create reserves at the same rate as the velocity of money.
B) velocity of money is not constant;therefore,the increase in the money supply should not be constant.
C) in the short run,increased unemployment and/or reduced inflation are the result of a reduction in the growth of the money supply.
D) in the short run,changes in the money supply can have no effect on output in the economy,only on prices.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents