Which of the following is the factor that leads to business cycles in the monetarist business cycle theory?

Question

Quizplus · Accepted Answer

According to the monetarist business cycle theory, changes in the growth rate of the quantity of money caused by the Federal Reserve are the main factor that leads to business cycles. The theory states that changes in the money supply affect interest rates, investment, and aggregate demand, leading to fluctuations in economic activity. Therefore, choice D is the correct answer.

Which of the Following Is the Factor That Leads to Business