Most monetarists favor:

A. frequent changes in the growth rate of the money supply to avoid inflation.
B. placing the Federal Reserve under the Treasury.
C. a steady, gradual shrinkage of the money supply.
D. a constant increase in the money supply year after year equal to the potential annual growth rate in real GDP.

Answer: D

Economics

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Which of the following statements best represents the opinion of many economists regarding the impact that changes in tax laws have had on recent changes in income inequality in the United States?

A) Reductions in income tax rates have favored high-income individuals more than low-income individuals. As a result, reductions in federal income tax rates have led to more income inequality. B) Reductions in income tax rates probably have had little impact on the distribution of income. C) Reductions in income tax rates have created greater incentives for low-income individuals to work, save, and invest. As a result, reductions in federal income tax rates have led to less income inequality. D) Reductions in income tax rates have been offset by increases in corporate income tax rates and payroll taxes. As a result, greater income inequality in the 1990s has been followed by a more equal distribution of income since 2001.

Economics

People like consuming peanut butter and jelly together. The price of peanuts increases. At the same time, we see the price for Jelly rise. This would make the price for peanut butter_____________ and the quantity demanded for peanut butter ____________

a. Uncertain; decreases b. Decreases; increases c. Decreases; uncertain d. Increases; uncertain

Economics