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

Question

Quizplus · Accepted Answer

Monetarists believe that changes in the quantity of money in circulation are the main cause of economic fluctuations. They believe that fluctuations in the money supply directly impact aggregate demand, which affects output, employment, and prices in the economy. Therefore, the growth rate of the quantity of money is the main driver of economic fluctuations according to monetarists.

For Monetarists the Main Cause of Economic Fluctuations Is Changes