Monetarists suggest doing which of the following?
A)Maintain a steady growth rate of the money supply.
B)Use fiscal policy to combat unemployment in the short run.
C)Use monetary policy to combat unemployment in the long run.
D)Use fiscal policy to combat inflation in the long run.

Question

Quizplus · Accepted Answer

Monetarists advocate for maintaining a steady growth rate of the money supply in order to promote long-term economic growth and stability. They believe that excessive increases in the money supply can lead to inflation, while insufficient increases can lead to unemployment and economic stagnation. Therefore, they argue that the government should focus on controlling the money supply through monetary policy.

Monetarists Suggest Doing Which of the Following