A policy implication of monetarism is that:
A) full employment will always be maintained.
B) countercyclical policies have no effect on the economy.
C) the growth of the money supply is caused by economic fluctuations.
D) constant growth of the money supply is better than discretionary policies.

Question

Quizplus · Accepted Answer

Monetarism suggests that constant growth of the money supply is preferable to discretionary policies, as it provides stability and predictability in the economy. This is because changes in the money supply can affect inflation rates, and constant growth can help prevent excessive inflation or deflation.

A Policy Implication of Monetarism Is That