The monetarists totally reject the importance of changes in the money stock as determinants of changes in real GDP, the price level, and employment.

Question

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Monetarists believe that changes in the money supply have important effects on real GDP, the price level, and employment. They argue that excessive increases in the money supply can lead to inflation and that central banks should focus on controlling the money supply to achieve macroeconomic stability.

The Monetarists Totally Reject the Importance of Changes in the Money