Most monetarists would say that: A) the MV = PQ equation provides a better understanding of the macroeconomy than does the C_a + I_g + X_n + G = GDP equation. B) most changes in the price level are explainable by changes in the level of real output. C) the velocity of money is quite unstable. D) all of these are true.

Question

Quizplus · Accepted Answer

Monetarists believe that the MV = PQ equation, which represents the quantity theory of money, provides a better understanding of the macroeconomy by emphasizing the role of money supply in determining price levels and output.

Most Monetarists Would Say That