According to the monetarists,
A)stable growth in the money supply is needed for economic stability.
B)aggregate demand is unstable,mostly because of unstable investment demand.
C)there is a need for fiscal policies to stabilize output.
D)stable money growth is not needed for the economy to be stable.

Question

Quizplus · Accepted Answer

Monetarists believe that stable growth in the money supply is necessary for economic stability. They argue that fluctuations in the money supply lead to fluctuations in economic output and employment, and that monetary policy should be used to maintain a steady rate of growth in the money supply. Additionally, monetarists generally believe that the government should play a limited role in the economy, and that fiscal policies aimed at stabilizing output are less effective than monetary policies.

According to the Monetarists