According to monetarist theory, a country can manipulate its money supply to
A)facilitate economic growth.
B)control inflation.
C)regulate economic activity.
D)Both a and c are true.
E)All of the above are true.

Question

Quizplus · Accepted Answer

Monetarist theory, primarily associated with economist Milton Friedman, posits that variations in the money supply have major influences on national output in the short run and the price level over longer periods. It suggests that managing the money supply can facilitate economic growth, control inflation, and regulate overall economic activity, making all the options correct.

According to Monetarist Theory, a Country Can Manipulate Its Money