Monetarists believe all of the following except:

Question

Quizplus · Accepted Answer

Monetarists do not believe that the central bank should adjust the money supply to adjust to various shocks to the economy. They argue that the best way to promote stability and economic growth is through the steady growth of the money supply at a pace that matches the growth of the economy's productive capacity. Monetarists also believe that fluctuations in the money supply are responsible for most large fluctuations in the economy, and that slow and steady growth of the money supply would yield stable output, employment, and prices.

Monetarists Believe All of the Following Except