Monetarists reject using discretionary monetary policy as an effective stabilization tool because they believe:
a. if the money supply grows at a rate equal to the economy's long-run rate of economic growth, then the economy will be unstable.
b. that changes in the money stock do not affect output or prices.
c. the Fed will miss its money supply targets and make the economy worse.
d. monetary policy can stimulate aggregate demand, but it cannot affect inflation.
c
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Use the DD-AA model to compare the domestic economic response under flexible and fixed exchange rate regimes to a temporary rise in export demand from foreign countries
What will be an ideal response?
A disadvantage of the proprietorship form of business organization is
A) its limited access to capital. B) its limited liability. C) that it can issue only one class of stock. D) that the owner must fight a lot of red tape to form the firm.