Milton Friedman and Anna Schwartz conclude that
A)output fluctuations cause changes in money growth.
B)changes in money growth cause output fluctuations.
C)there is no causal link between the money supply and output.
D)there is no evidence for changes in the money supply that are not influenced by changes in output or by third factors that influenced both money and output.

Question

Quizplus · Accepted Answer

Milton Friedman and Anna Schwartz's research concluded that changes in money growth cause output fluctuations. They found that changes in the money supply were the primary driver of changes in nominal spending and output in the long run. However, in the short run, shifts in demand and supply conditions can cause temporary fluctuations in output that are not caused by changes in the money supply.

Milton Friedman and Anna Schwartz Conclude That