Briefly describe monetarism and the monetary growth rule
What will be an ideal response?
Monetarism refers to the macroeconomic theories of Milton Friedman and his followers, particularly the idea that the quantity of money should be increased at a constant rate. The monetary growth rule is a rule adhered to by monetarists. It is a plan for increasing the quantity of money at a fixed rate that does not respond to changes in economic conditions.
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Based on the data in Table 3.1, if Jesse and April choose to specialize and trade, then
A) April will specialize in painting snowboards and trade snowboards for kites. B) Jesse will specialize in painting snowboards and trade snowboards for kites. C) April will specialize in painting kites and trade kites for snowboards. D) None of the above; specialization and trade are not beneficial for Jesse and April.
If economies of scale exist for a particular production relationship, long-run average costs will
a. rise. b. fall. c. first rise and then fall. d. be unaffected since there is no direct relationship between the two.