Until the early 1970s evidence strongly supported ________.
A) stability of the money demand function
B) variability of money demand
C) increasing financial innovation
D) the importance of fiscal policy

Question

Quizplus · Accepted Answer

Until the early 1970s, there was a consensus among economists that the money demand function was stable and could be relied upon by policymakers to guide monetary policy. This view was challenged in the 1970s when empirical evidence showed that the relationship between money supply and demand had become less stable.

Until the Early 1970s Evidence Strongly Supported ________