Milton Friedman and Anna Schwartz Believe That Their Evidence Indicates

Multiple Choice

Milton Friedman and Anna Schwartz believe that their evidence indicates that money growth causes output fluctuations because they discovered that

A) nominal interest rates move inversely with changes in the money supply.
B) the Fed always responds passively to changes in money demand.
C) in many episodes, money changed as a result of a previous change in output.
D) in many episodes, money changes preceded output changes and were independent of them.