Which of the following statements is correct?
A) Monetarists believe that the economy is inherently unstable.
B) Monetarists believe that policy activism is one of the principal causes of economic instability.
C) Although monetarists are basically non-interventionist,they are in favor of activist monetary policy.
D) Monetarists argue that changes in M1 affect GDP only through changes in interest rates.
E) Monetarists believe that discretionary monetary policy is essential to successful economic stabilization efforts.
Correct Answer:
Verified
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