Because monetarists believe that output is sensitive to changes in the money supply,they recommend that the money supply be allowed to grow at a steady and predictable rate.

Question

Quizplus · Accepted Answer

Monetarists argue that changes in the money supply directly impact the level of output in the economy, and therefore recommend that the money supply should grow at a constant rate to promote stability and avoid economic fluctuations.

Because Monetarists Believe That Output Is Sensitive to Changes in the Money