Monetarists believe that:
a. the government should follow a fixed rule to change money supply in response tobusiness cycles
b. the government should not use discretionary monetary policy to achieve its goals ofeconomic growth and low inflation.
c. government intervention should be well thought out and should be used only during recessions.
d. government intervention in the economy makes business cycles disappear.
e. government intervention policies have only long-run effects.
b
You might also like to view...
A crisis in the Middle East drastically raises the price of petroleum. If the aggregate demand curve does not shift, then aggregate supply will ________, real GDP will ________, and the price level will ________
A) increase; remain the same; increase B) decrease; decrease; increase C) increase; increase; increase D) remain the same; increase; increase E) decrease; remain the same; decrease
If positive externalities are present in a free market, ________ at any output level
A) the marginal cost of production equals the average cost of production B) the marginal social cost of production exceeds the marginal private cost C) the marginal private benefit from production equals marginal social benefit D) the marginal social benefit of production exceeds marginal private benefit