In the monetarist view, the money supply affects the economy

Question

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In the monetarist view, changes in the money supply directly affect the economy by altering the level of total spending in the economy, regardless of interest rates. As the money supply increases, individuals and businesses have access to more funds, which can lead to increased spending and economic growth. Conversely, a decrease in the money supply can lead to decreased spending and economic contraction. Monetarists believe that the control of the money supply should be a primary tool of monetary policy.

In the Monetarist View, the Money Supply Affects the Economy