"Monetary instability has been the major cause of economic instability in this country. Expansion in the money supply has been the source of every major inflation. Every major recession has been either caused or perpetuated by monetary contraction." Who among the following would most likely adhere to this view?
A) Monetarists.
B) Keynesians.
C) Demand-side economists.
D) Quantity theorists.

Question

Quizplus · Accepted Answer

Monetarists believe that changes in the money supply are the primary cause of economic instability, and thus would be most likely to attribute inflation and recession to monetary factors.

"Monetary Instability Has Been the Major Cause of Economic Instability