Monetarists argue that the central bank should allow the money supply to grow:
A) counter to the business cycles.
B) faster than 10 per cent annually.
C) only during recessions.
D) at a constant rate.

Question

Quizplus · Accepted Answer

Monetarists believe in a constant growth rate for the money supply, as they argue that the stability of the money supply is important for maintaining a stable economy. This constant growth rate would not necessarily be tied to business cycles or recessions, but rather would be based on long-term economic growth and price stability goals.

Monetarists Argue That the Central Bank Should Allow the Money