A central banker believes that current consumer spending is based on wealth rather than income and that monetary policy can have an impact on output in the short run but have an impact on prices only in the long run. This central banker's views are consistent with the _____ perspective.

Question

Quizplus · Accepted Answer

The monetarist perspective emphasizes the role of money supply in determining output and prices. This central banker's views are consistent with the monetarist perspective because they believe that monetary policy can have an impact on output in the short run but have an impact on prices only in the long run.

A Central Banker Believes That Current Consumer Spending Is Based