The main result of the monetarist model is that
A)workers and firms have rational expectations.
B)the quantity of money should be increased at a constant rate.
C)productivity shocks explain fluctuations in real GDP.
D)the economy is slow to adjust to sticky wages and prices.

Question

Quizplus · Accepted Answer

The main result of the monetarist model is that the quantity of money in the economy should be increased at a constant rate to promote economic growth and stability. Monetarists believe that changes in the money supply have a direct effect on the level of aggregate demand, and that stable monetary policy can help avoid economic recessions and inflation.

The Main Result of the Monetarist Model Is That