Asked by A Breath of Mahek on May 18, 2024
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The monetarists believe
A) balancing the budget is the most important role of the government.
B) if the money supply were increased people would spend this money on assets of one kind or another.
C) expansionary monetary policy will permanently reduce the unemployment rate.
D) the money supply must remain constant from year to year.
Monetarists
Monetarists believe in the control of the supply of money as the primary method of controlling inflation and stabilizing the economy.
Balancing the Budget
The process of adjusting income and expenditure so that they equal each other, resulting in neither a budget deficit nor a surplus.
Money Supply
The total amount of monetary assets available in an economy at a specific time, including cash, bank deposits, and other liquid assets.
- Determine the fundamental principles held by monetarists regarding the regulation of money supply and its impact on economic strategies.
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Learning Objectives
- Determine the fundamental principles held by monetarists regarding the regulation of money supply and its impact on economic strategies.
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