The policy position that the supply of money should be increased at a constant rate each year is most closely associated with the views of:
A) Monetarism
B) Real business cycle theory
C) Mainstream economics
D) Supply-side economics

Question

Quizplus · Accepted Answer

The policy position that the supply of money should be increased at a constant rate each year is a key tenet of Monetarism, which emphasizes the importance of controlling the money supply to stabilize the economy and prevent inflation. Real business cycle theory focuses more on the role of technological shocks and productivity in business cycles, while mainstream economics and supply-side economics do not have a specific policy position on the money supply.

The Policy Position That the Supply of Money Should Be