Which of the following is the factor that leads to business cycles in the monetarist business cycle theory?
A) an unexpected change in aggregate demand
B) a change by the Fed in the growth rate of the quantity of money
C) a change in business confidence
D) a change in the growth rate of productivity

Question

Quizplus · Accepted Answer

Monetarist business cycle theory, primarily associated with Milton Friedman, posits that fluctuations in the business cycle are largely due to changes in the money supply by the central bank, in this case, the Federal Reserve (the Fed).

Which of the Following Is the Factor That Leads to Business