For monetarists, the main cause of economic fluctuations is represented by changes in
A) investment.
B) consumption expenditure.
C) the growth rate of the quantity of money.
D) the levels of household debt.

Question

Quizplus · Accepted Answer

Monetarists, such as Milton Friedman, argue that the primary factor influencing economic fluctuations is the growth rate of the quantity of money in the economy. They believe that changes in the money supply directly affect inflation, interest rates, and ultimately, economic activity.

For Monetarists, the Main Cause of Economic Fluctuations Is Represented