In a study published in 1963,Milton Friedman and Anna Schwartz found that in every business cycle they studied over nearly a hundred-year period,the growth rate of the ________ decreased before ________ decreased.
A)money supply;interest rates
B)money supply;output
C)budget deficit;interest rates
D)budget deficit;output

Question

Quizplus · Accepted Answer

Friedman and Schwartz, in their influential work, demonstrated that in the business cycles they examined, a decrease in the growth rate of the money supply preceded a decrease in output. This finding supports the view that monetary policy plays a significant role in influencing economic cycles.

In a Study Published in 1963,Milton Friedman and Anna Schwartz