The Monetarists advocate the monetary rule in order to stabilize the business cycle which states that the money supply should be decreased by a constant rate year after year

Contractionary fiscal policy is used to decrease aggregate demand in an attempt to fight rising inflation

Indicate whether the statement is true or false

When considering setting the transfer price at the market price of a product similar to the intermediate good that is already available on the market

a. It is important to recognize that the market price includes a margin above marginal cost b. It is OK if the product on the market includes costly features your downstream division does not use c. it is OK if the product on the market is inexpensive because its quality is lower than you use d. if it is similar enough, it is justification for you producing it in-house