One of the problems with a strict monetary policy rule that sets a constant growth rate for the money supply is that when there are large shocks to the economy, the growth rate of _______, causing real GDP growth to slow down.
A. the average price level can fall
B. the average price level can rise
C. the velocity of money can fall
D. the velocity of money can rise
Ans: C. the velocity of money can fall
Economics
You might also like to view...
Which of the following weakens government control in the marketplace?
(A) Predatory pricing. (B) Deregulation. (C) Regulation of businesses. (D) Antitrust legislation.
Economics
For a competitive firm the marginal revenue product of labor is usually downward sloping
What will be an ideal response?
Economics