According to Monetarists, a direct substitution between cash balances and real goods results from a change in

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Monetarists believe that changes in the money supply have a direct impact on the demand for goods and services. An increase in the money supply leads to an increase in the amount of cash available, which can be used to purchase goods and services. As a result, monetarists argue that changes in the money supply will directly affect the demand for real goods and services.

According to Monetarists, a Direct Substitution Between Cash Balances and Real