Extreme monetarists assert that changes in the money supply
A)Affect prices and real GDP.
B)Can affect only the price level.
C)Can affect only real GDP.
D)Affect prices and the unemployment rate.

Question

Quizplus · Accepted Answer

Extreme monetarists believe that changes in the money supply can only affect the price level in the long run, not real GDP or the unemployment rate, which are determined by real factors in the economy.

Extreme Monetarists Assert That Changes in the Money Supply