Modern mainstream macroeconomists agree with the monetarists that:
A. the Fed should increase the money supply at a fixed annual rate.
B. velocity is highly stable.
C. fiscal policy is largely ineffective.
D. "money matters" in the macroeconomy.
D. "money matters"; in the macroeconomy.
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What effect does the following transaction have on the U.S. balance of payments?(Choose the proper debit and credit entries.)U.S. residents invest in Swiss bank accounts by converting their U.S. dollar savings deposits into Swiss francs and then investing them
a. Debit the U.S. financial account; credit the U.S. current account. b. Credit the U.S. financial account; debit the U.S. current account. c. Debit the U.S. financial account; credit the U.S. financial account. d. Credit the U.S. financial account; debit errors and omissions.
If the price elasticity of demand for a good is 0.5, then a 5 percent increase in price results in a
a. 0.1 percent decrease in the quantity demanded. b. 1 percent decrease in the quantity demanded. c. 2.5 percent decrease in the quantity demanded. d. 10 percent decrease in the quantity demanded.