According to the monetarists
A) the supply of money changes in response to changes in the levels of real output and prices.
B) changes in the velocity of money are more important than changes in the money supply in causing the level of economic activity to change.
C) an expansionary fiscal policy will lower interest rates and thereby tend to over stimulate investment and consumption.
D) changes in the money supply are the primary cause of changes in the price level.
Correct Answer:
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Q72: If V in the equation of exchange
Q73: New classical economists believe that
A)wage and price
Q74: Q75: In periods of relatively high levels of Q76: Q78: Monetarists Q79: Monetarists advocate that the Q80: The theory of rational expectations concludes that Q81: Economists favoring the rational expectations theory maintain Q82: Use the following list of modern macroeconomic
A)argue for the use of discretionary monetary
A)money supply should be
A)the
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