The monetarist view gained adherents in the late 1960s because
A) of the obvious difficulty in using fiscal policy to restrain spending.
B) the 1968 surtax was effective in reducing inflation.
C) it was demonstrated empirically that MV = PQ.
D) at the time the U.S. economy was stagnant.
E) Keynesians and monetarists finally agreed on the line of causation between the money supply and GDP.

Question

Quizplus · Accepted Answer

Monetarists argued that controlling the money supply was more effective than fiscal policy in managing the economy, especially given the challenges of using fiscal policy to control spending.

The Monetarist View Gained Adherents in the Late 1960s Because