In the Monetarist Business Cycle Theory, Decreasing the Growth Rate

Multiple Choice

In the monetarist business cycle theory, decreasing the growth rate of the quantity of money ________ and increasing the growth rate of the quantity of money ________.

A) increases real GDP; decreases the inflation rate
B) decreases real GDP; decreases the inflation rate
C) causes the economy to enter a recession; causes the economy to enter an expansion
D) causes the economy to enter an expansion; causes the economy to enter a recession