The view that changes in the money supply are the primary cause of change in real output and the price level is most closely associated with
A) rational expectations theory.
B) real-business-cycle theory.
C) mainstream economics.
D) monetarism.

Question

Quizplus · Accepted Answer

The belief that changes in the money supply are the primary cause of changes in real output and the price level is a fundamental tenet of monetarism.

The View That Changes in the Money Supply Are the Primary