According to the Monetarists,the real effect of monetary policy on output is
A)long-lasting and unpredictable.
B)predictable and beneficial.
C)nonexistent in the short run.
D)always less than fiscal policy

Question

Quizplus · Accepted Answer

Monetarists, led by Milton Friedman, argue that the real effect of monetary policy on output is long-lasting but unpredictable due to the complex ways in which changes in the money supply can affect the economy over time. They believe in the long-term influence of monetary policy on inflation and economic output, but also acknowledge the difficulty in predicting the exact outcomes due to the variable lags and the complexity of economic interactions.

According to the Monetarists,the Real Effect of Monetary Policy on Output