Modern monetarists view any increases or decreases in total output stemming from expansions or contractions in the money supply as
A) permanent.
B) temporary.
C) irrelevant.
D) extremely important.

Question

Quizplus · Accepted Answer

Modern monetarists believe that increases or decreases in total output resulting from changes in the money supply are only temporary. This is because they believe the long-run relationship between money supply and output is determined by the natural rate of unemployment and potential output, which are not affected by changes in the money supply.

Modern Monetarists View Any Increases or Decreases in Total Output