Milton Friedman and Anna Schwartz believe that money's impact on output appears
A)within a few months.
B)only in the very long run.
C)with a long and variable lag.
D)only in the very short run.

Question

Quizplus · Accepted Answer

Friedman and Schwartz's research suggests that the impact of money on output has a long and variable lag, meaning that it can take several months or even years for changes in the money supply to affect the economy. This is consistent with the idea that monetary policy works with a delay, as it takes time for changes in interest rates and other monetary variables to influence spending and investment decisions.

Milton Friedman and Anna Schwartz Believe That Money's Impact on Output