Multiple Choice
Which of the following statements is consistent with the quantity theory of money?
A) Monetary policy should be used in the short run to try to steer the economy.
B) The money supply should be increased by a percentage to allow for changes in productivity and growth, but that percentage cannot be determined.
C) Expansionary monetary policy is the only way to prevent a mild recession from developing into a serious recession or depression.
D) A prescribed monetary policy should be followed regardless of what's happening in the economy.
Correct Answer:
Verified
Correct Answer:
Verified
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