Which of the following is a monetarist solution to reduce inflation?
A) Reduce the money supply.
B) Raise taxes.
C) Decrease government spending.
D) Reduce interest rates.

Question

Quizplus · Accepted Answer

Monetarists believe that inflation is primarily caused by an increase in the money supply. Therefore, reducing the money supply is seen as the most effective solution to reduce inflation. Options B and C may have other benefits, but they are not specifically targeted towards reducing inflation. Option D is a Keynesian solution, not a monetarist one.

Which of the Following Is a Monetarist Solution to Reduce