With a monetary growth rule as proposed by the monetarists, during a recession the rate of growth of the money supply would
A) not change.
B) increase.
C) decrease.
D) decrease or increase depending on economic conditions.
A
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When an employer pays the cost of educating a worker, it is likely that the employer
a. is demonstrating altruistic motives. b. is pursuing some objective other than profit-maximization. c. hopes to recapture his investment in the form of increased labor productivity. d. receives reimbursement from the government for the cost of the education.
The scandals involving Enron, World Com, Global Crossing and other large firms:
A. have resulted in a cry for less government regulation of public corporations. B. demonstrate that the government should be responsible for collecting and distributing financial information on firms. C. is what should have been expected on the part of investors, that is why there is a risk premium. D. are examples of asymmetric information and have led, at least temporarily, to a less well functioning stock market.