Monetarists Say

Multiple Choice

Monetarists say

A) that, because P is stable, a change in M will change Q proportionately in the opposite direction.
B) a change in the money supply will change aggregate demand and therefore nominal GDP.
C) a change in the money supply will change velocity, which in turn will change nominal GDP.
D) a change in the money supply will change the interest rate, which will change investment spending and nominal GDP.