Monetarists believe that
A)prices and wages are inflexible or sticky.
B)both product and resource markets are monopolistic.
C)velocity is relatively stable.
D)the economy is more stable when active fiscal and monetary policy are used.

Question

Quizplus · Accepted Answer

Monetarists believe that the velocity of money, which is the rate at which money circulates in the economy, is relatively stable. This belief is central to their argument that changes in the money supply have predictable effects on the economy.

Monetarists Believe That