According to the Monetarists, Which of the Following Is True

Multiple Choice

According to the monetarists, which of the following is true?

A) Instability in the money supply is the primary cause of economic instability.
B) A reduction in the money supply will cause consumers to increase spending.
C) A reduction in the money supply will cause a proportional reduction in wages and prices, leaving output unchanged.
D) A rapid growth rate of the money supply will lead to a rapid growth rate of real GDP.