63.5k views
2 votes
It is generally agreed that when the rate of monetary growth exceeds the rate of growth in real GDP in the long run. True False

1 Answer

5 votes

Answer:

False. It is not generally agreed that when the rate of monetary growth exceeds the rate of growth in real GDP in the long run. In economics, there are varying perspectives on the relationship between monetary growth and economic growth.

Some economists believe that excessive monetary growth, especially when it exceeds the growth in real GDP, can lead to inflation and other economic imbalances, which are generally considered detrimental to the economy in the long run.

However, the relationship between monetary growth and economic growth is complex, and there are differing views on the optimal monetary policy for achieving long-term economic stability and growth. Some economists argue that moderate monetary growth can be beneficial for economic expansion and stability, while others emphasize the importance of maintaining a stable and predictable monetary policy.

So, whether excessive monetary growth is harmful or not in the long run is a matter of ongoing debate among economists, and there is no unanimous agreement on this issue.

User Johane
by
8.9k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.