Multiple Choice
The main idea behind monetarism is that:
A) the aggregate output will be even greater than potential output if the money supply grows at a constant rate.
B) the aggregate price level will increase proportionally if the money supply grows at a constant rate.
C) the government budget will have a deficit if the government spending grows at a constant rate.
D) the aggregate output will grow steadily at a constant rate if the money supply also grows at a constant rate.
Correct Answer:

Verified
Correct Answer:
Verified
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