Monetarists Argue That

question 214

Multiple Choice

Monetarists argue that:

• A) the Federal Reserve System should allow the money supply to increase at a slow, steady annual rate.
• B) since the velocity of money is unstable, a fixed annual increase in the money supply will exacerbate inflation in the long run.
• C) self-correction is less effective than activist monetary policy.
• D) fiscal policy should always be used before monetary policy.

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