Monetarists Argue That

question 63

Multiple Choice

Monetarists argue that

• A) the Federal Reserve System should institute a prescribed rate of growth in the money supply.
• B) since velocity 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) policymakers should use monetary policy rather than fiscal policy to stabilize the economy.