Liberals argue that monetarist policies
A) are the only way to deal with inflation.
B) cause high interest rates that hamper investment in the productive base of the economy.
C) are justified by the tight relationship between the money supply and GDP.
D) work better than fiscal policy.

Question

Quizplus · Accepted Answer

Liberals argue that monetarist policies, which focus on controlling the money supply to manage inflation, cause high interest rates that hamper investment in the productive base of the economy. They advocate for a mix of fiscal and monetary policies to manage the economy.

Liberals Argue That Monetarist Policies