Multiple Choice
Monetarists argue that monetary policy should not be used as a stabilization tool to offset business fluctuations because they believe that
A) changes in the money supply do not affect spending.
B) the lag effects associated with monetary policy can make it destabilizing.
C) expansionary monetary policy will not increase aggregate demand.
D) contractionary monetary policy will not decrease aggregate demand.
Correct Answer:
Verified
Correct Answer:
Verified
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