Economists Use the Term "Monetary Validation" to Refer to

Multiple Choice

Economists use the term "monetary validation" to refer to

A) the money supply being decreased in response to a demand shock.
B) the Bank of Canada having a credible policy of zero inflation.
C) the money supply being increased in response to a supply or a demand shock that raises the price level.
D) people who hold smaller money balances at higher rates of interest.
E) money supply increases which have been approved by Parliament,in response to supply or demand shocks that create an output gap.