In 2008, Japan's economy suffered as world economies slowed. If authorities in Japan followed the monetarist viewpoint, ________ to bring the economy back to full employment.
A) taxes would be decreased and the money supply should be increased
B) nothing should be done
C) aggregate supply would shift leftward
D) the money supply would be kept growing at a steady pace

Question

Quizplus · Accepted Answer

Monetarists believe in controlling the money supply to manage economic stability. They would advocate for keeping the money supply growing at a steady pace to ensure long-term economic stability and bring the economy back to full employment.

In 2008, Japan's Economy Suffered as World Economies Slowed