Economic stability is linked with the supply and costs of money. Thus, all of the following statements are correct, except the:

A. lower the costs of money, the greater the economic activity.

B. higher the costs of money, the greater the economic activity.

C. more money in circulation, the greater the economic activity.

D. less money in circulation, the less the economic activity.

Question

Business

Bo Hull

30 January, 03:37

Economic stability is linked with the supply and costs of money. Thus, all of the following statements are correct, except the:

A. lower the costs of money, the greater the economic activity.

B. higher the costs of money, the greater the economic activity.

C. more money in circulation, the greater the economic activity.

D. less money in circulation, the less the economic activity.

+1

Answers (1)

Know the Answer?

Antony Anthony · Answer 1

The correct answer is:

Lower the costs of money, the greater the economic activity.

Explanation:

In context of question, Economic stability is linked with the supply and costs of money. This means economic stability means higher the cost of money, the greater the economic activity, more money in circulation the greater the economic activity less money in circulation, the less the economic activity.

Economic stability is that in which there is no excessive fluctuations. It is an economy in which there is constant output growth. It is very important, as it avoids situation of financial crises and economic crises and swings in economic. There are many economic indicators, some of them are Gross Domestic Product, Employment, Consumer Price Index, etc.