What Is Monetarism

Multiple Choice

What is Monetarism?

A) The belief that the economic system works well except when the government makes mistakes in monetary policy.
B) The belief that monetary policy can stabilize the economy in the short run.
C) The belief that the Federal Reserve should continually adjust the money supply to accommodate fluctuations in demand over the business cycle.
D) The belief that an increase in the money supply will lead to an increase in GDP.