According to monetarists
A) the economy is relatively stable.
B) economic policy is effective in increasing output.
C) the economy is very unstable.
D) government spending is the main source of inflation.

Question

Quizplus · Accepted Answer

Monetarists, such as Milton Friedman, believe that the economy is inherently stable and that markets work well when left alone, except for some short-term fluctuations. They argue that monetary policy, rather than fiscal policy, is the most effective tool for managing the economy's growth and stability.

According to Monetarists