For monetarists the main cause of economic fluctuations is changes in
A) the levels of household debt.
B) the growth rate of the quantity of money.
C) consumption expenditure.
D) investment.

Question

Quizplus · Accepted Answer

Monetarists believe that changes in the growth rate of the quantity of money are the main cause of economic fluctuations. They argue that changes in the money supply affect aggregate demand, which in turn affects output, employment, and prices. In their view, the government should manage the money supply in a predictable and stable manner to promote economic stability and growth.

For Monetarists the Main Cause of Economic Fluctuations Is Changes