问题


There is a single choice question about high school macroeconomics. Answer the question by replying A, B, C or D.
Question: An important assumption underlying monetarism is that
A. the marginal propensity to consume is constant.
B. the money supply is continuous.
C. the exchange rate is fixed.
D. the velocity of money is stable.
Answer:

答案

模型 模型答案 正确答案
金声玉亮2.0

D
D
deepseekr1

The correct answer is **D. the velocity of money is stable.**

Monetarism, associated with Milton Friedman, emphasizes the role of the money supply in influencing economic outcomes. A foundational assumption is that the **velocity of money (V)**—the rate at which money circulates through the economy—is relatively stable and predictable in the short run. This stability allows monetarists to argue that changes in the money supply (M) directly affect nominal GDP (PY) via the equation of exchange (MV = PY). If V were unstable, the link between money supply and economic activity would weaken, undermining monetarist policy prescriptions.

Other options are less central:
- **A** (constant MPC) aligns with Keynesian consumption theory, not monetarism.
- **B** ("continuous" money supply) is vague and not a core assumption.
- **C** (fixed exchange rates) pertains to international monetary systems, not monetarist fundamentals.

Thus, **D** is the key assumption.

Answer: D
D
gpto1 D D
GPT-4o D. the velocity of money is stable. D
llama3.1-70B-Instruct

D
D
llama3.1-405B-Instruct

D
D
DeepSeek-Coder-V2 D D
Qwen2-72B-Instruct D. the velocity of money is stable. D
baichuan4 D. the velocity of money is stable. D
doubao D. D
minimax D. the velocity of money is stable. D
kimi D. the velocity of money is stable. D
wenxinyiyan D

Monetarism is a macroeconomic theory that emphasizes the role of the money supply in determining economic growth and inflation. One of the key assumptions underlying monetarism is that the velocity of money—the rate at which money circulates in an economy—is relatively stable. This assumption allows monetarists to focus on the money supply as a primary determinant of economic activity, rather than other factors such as fiscal policy or interest rates.

Explanation of options:

A. The marginal propensity to consume (MPC) is a measure of how much of an increase in income a consumer will spend on consumption, rather than save. While it is an important concept in macroeconomics, it is not a specific assumption underlying monetarism.

B. The money supply can be affected by various factors, including monetary policy decisions by central banks. However, the assumption that the money supply is "continuous" is not a core assumption of monetarism. Monetarism focuses more on the quantity of money supply and its relationship to economic activity.

C. The exchange rate is the value of one currency relative to another. While exchange rates can influence economic activity, they are not a central assumption of monetarism. Monetarism primarily concerns the domestic money supply and its effects on domestic economic activity.

D. The velocity of money—the average frequency with which a unit of currency is spent in a specific period of time—is a crucial assumption in monetarism. If the velocity of money is stable, it allows for more predictable relationships between the money supply, economic growth, and inflation. This stability is essential to the monetarist theory that changes in the money supply are the primary driver of economic activity.
D
zhipu D. the velocity of money is stable.

Monetarism is an economic theory that emphasizes the role of government control of money supply and focuses on the effects of monetary policy. One of its key assumptions is that the velocity of money, which is the frequency at which one unit of currency is used to purchase domestically-produced goods and services within a given time period, remains stable. This stability allows for predictable relationships between money supply, price level, and output.
D
gpto1 D D