Monetarists say the velocity of money is highly variable and there is no close link between the
money supply and the level of economic activity.

Question

Quizplus · Accepted Answer

Monetarists, such as Milton Friedman, argue that the velocity of money is relatively stable and that there is a close, predictable relationship between changes in the money supply and changes in the level of economic activity over the long term.

Monetarists Say the Velocity of Money Is Highly Variable and There