A monetarist would argue that

Question

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Monetarists believe that variations in the money supply (M) have major influences on national output in the short run and the price level over longer periods, but also acknowledge that velocity (V) changes can offset money supply changes in the short term (A). They argue that in the short run, changes in the money supply can indeed affect real GDP (B), and they generally assume that prices and wages are flexible, allowing for adjustments in the economy in response to changes in the money supply (C).

A Monetarist Would Argue That