Monetarism asserts that GDP will grow steadily if the money supply grows steadily.

Question

Quizplus · Accepted Answer

Monetarism is a macroeconomic theory that emphasizes the role of the money supply in the economy. According to monetarism, the key to economic growth and stability is to keep the money supply growing at a steady, predictable rate. This promotes price stability and ensures that businesses and consumers have access to the money they need to invest and spend. Therefore, according to monetarism, if the money supply grows steadily, GDP will also grow steadily.

Monetarism Asserts That GDP Will Grow Steadily If the Money