The main result of which of the following models is that the quantity of money should be increased at a constant rate?
A) Monetarist model
B) New classical model
C) Real business cycle model
D) New Keynesian model

Question

Quizplus · Accepted Answer

The main result of the Monetarist model, proposed by economist Milton Friedman, is that the quantity of money in an economy should be increased at a constant rate to maintain long-term price stability and avoid inflation. This theory emphasizes the role of the central bank in controlling the money supply to influence the level of economic activity.

The Main Result of Which of the Following Models Is