According to extreme monetarists,monetary policy affects
A)The velocity of money and level of employment.
B)Real output,investment,and the money supply.
C)Aggregate demand,prices,and nominal interest rates only.

Question

Quizplus · Accepted Answer

Extreme monetarists believe that the main impact of monetary policy is on aggregate demand, prices, and nominal interest rates. They argue that changes in the money supply directly affect the demand for goods and services, which in turn affects prices and interest rates. They also suggest that the impact on real output and employment is limited and temporary, as the economy will always return to its natural level of output in the long run.

According to Extreme Monetarists,monetary Policy Affects