In the monetarist view,
A)changes in investment spending are a major source of macroeconomic instability.
B)inappropriate monetary policy is a major source of macroeconomic stability.
C)adverse aggregate supply shocks are a major source of macroeconomic instability.
D)the fact that prices and wages are flexible is a major source of macroeconomic instability.

Question

Quizplus · Accepted Answer

Monetarists believe that inappropriate monetary policy, particularly erratic changes in the money supply, is a major source of macroeconomic instability. They emphasize the role of stable monetary policy in maintaining economic stability.

In the Monetarist View