In the monetarist view,
A) changes in investment spending are a major source of macroeconomic instability.
B) inappropriate monetary policy is a major source of macroeconomic stability.
C) adverse aggregate supply shocks are a major source of macroeconomic instability.
D) the fact that prices and wages are ﬂexible is a major source of macroeconomic instability.

Question

Quizplus · Accepted Answer

Monetarists, such as Milton Friedman, argue that inappropriate or erratic monetary policy can lead to fluctuations in the money supply that are a major source of macroeconomic instability. They emphasize the role of government's control over the money supply in causing economic fluctuations.

In the Monetarist View