The Pure Monetary Theory argues that fluctuations in the money supply and credit conditions are the main drivers of cyclical fluctuations in economic activity.
Which of the following economists propagated the Pure Monetary Theory of Trade Cycle ?
Asked in UKPSC CS Prelims 2012 · Topic: Money & Banking (Inflation: Types, Causes, Effects, and Monetary Policy Responses)
More Economic Development questions
- A measure of the total inflation within an economy, including such as food and energy prices is called
- Which of the following statement is correct ?
- Consider the following statements: 1. When the inflation decreases, but still remains positive, it is deflation. 2. Deflation reduces the real value of money over time. 3. Historically not all episodes of deflation correspond with periods of poor economic growth. Which of the statements given above is/are correct ?
- What is the real interest rate on a Credit Card loan bearing 24% interest per year, if the rate of inflation is 10% ?
- Consider the following statements: 1. Inflation benefits the debtors. 2. Inflation benefits the bond-holders. Which of the statements given above is/are correct?
- A rise in general level of prices may be caused by 1. an increase in the money supply 2. a decrease in the aggregate level of output 3. an increase in the effective demand Select the correct answer using the codes given below.
- An increase in the money supply, if not matched by a proportional increase in output, leads to too much money chasing too few goods, causing demand-pull inflation. 2. A decrease in the aggregate level of output, with demand remaining constant or increasing, creates scarcity relative to demand, leading to cost-push or supply-side inflation. 3. An increase in effective demand (aggregate demand) that exceeds the available supply leads to demand- pull inflation. 365. Supply of money remaining the same when there is an increase in demand for money, there will be
- Consider the following statements: The weightage of food in Consumer Price Index (CPI) is higher than that in Wholesale Price Index (WPI). The WPI does not capture changes in the prices of services, which CPI does. Reserve Bank of India has now adopted WPI as its key measure of inflation and to decide on changing the key policy rates. Which of the statements given above is/are correct ?