According to monetarists,the main cause of change in the level prices are changes in

Question

Quizplus · Accepted Answer

Monetarists believe that changes in the money supply are the main cause of changes in the level prices. An increase in the money supply leads to an increase in spending, which in turn leads to increased demand for goods and services, and ultimately causes prices to rise. Conversely, a decrease in the money supply leads to decreased spending, decreased demand, and lower prices. Therefore, B is the best choice as the main cause of change in the level prices.

According to Monetarists,the Main Cause of Change in the Level