If inflation becomes a serious problem, a Monetarist-oriented President is likely to favor a policy emphasizing
A) slower monetary growth.
B) lower interest rates.
C) higher taxes.
D) wage and price controls.

Question

Quizplus · Accepted Answer

Monetarists believe that inflation is primarily caused by increases in the money supply, so a Monetarist-oriented President would likely favor a policy of slower monetary growth to combat inflation. Lower interest rates, higher taxes, and wage and price controls are not typically favored by Monetarists as effective tools for addressing inflation.

If Inflation Becomes a Serious Problem, a Monetarist-Oriented President Is