Monetarism suggests that:
A) money should be backed by gold.
B) the economy is unstable.
C) monetary policy should be used to offset economic fluctuations.
D) discretionary monetary policy does more harm than good.

Question

Quizplus · Accepted Answer

Monetarism, associated with Milton Friedman, argues that discretionary monetary policy can lead to instability and that a rules-based approach, such as a fixed money supply growth rate, is preferable.

Monetarism Suggests That