Which monetarist idea has been absorbed into mainstream macroeconomics?
A)The net export effect has a stronger effect on fiscal policy than monetary policy.
B)Cuts in tax rates significantly increase the productive capacity of the economy over the historical averages.
C)Excessive growth in the money supply over long periods leads to inflation.
D)The federal funds rate is a more important monetary target than the money supply.

Question

Quizplus · Accepted Answer

Monetarists emphasize that controlling the money supply is crucial for managing inflation, and this idea has been widely accepted in mainstream macroeconomics.

Which Monetarist Idea Has Been Absorbed into Mainstream Macroeconomics