Author Question: In the monetarist view, if there is an increase in money growth then a. the money supply and ... (Read 112 times)

iveyjurea · **on:** Jun 30, 2018

In the monetarist view, if there is an increase in money growth then

a. the money supply and inflation will grow proportionally, with no effect on output and employment.
b. the money supply grows faster than the inflation rate, with unfavorable effects on output and employment.
c. the money supply grows faster than the inflation rate, leading to an increase in output and employment in the short-run.
d. there will be no effect on output, employment, or inflation, in the long-run.
e. both c and d.

Question 2

The South's post-Civil War backwardness was due to all of the following except

(a) extensive wartime destruction of life and property.
(b) the fiscal disaster of the Confederacy, whereby nine tenths of the state banks in the South vanished.
(c) the price of cotton was increasing, as it had prior to the Civil War, thus keeping cotton profitable and discouraging investors in the South from developing a modern manufacturing system.
(d) the failure of the sharecropping system to provide incentives for innovation and progress
in agriculture.