A monetarist would advocate decreasing the growth rate of money supply during a recession.

Question

Quizplus · Accepted Answer

Monetarists believe that the money supply should be kept stable over the long term, and that changes in the money supply do not have a significant effect on real economic variables like output and employment. Therefore, they would not advocate for decreasing the growth rate of money supply during a recession. Rather, they would advocate for keeping a stable growth rate of money supply throughout the business cycle.

A Monetarist Would Advocate Decreasing the Growth Rate of Money