According to the Monetarist Theory of Macroeconomic Policy

question 50

Multiple Choice

According to the monetarist theory of macroeconomic policy,

• A) prices drop when there is too much money chasing too few goods.
• B) inflation should be avoided at all costs for the overall good of the economy.
• C) interest rates should be kept low at all times to encourage investment.
• D) a recession can result when there is not enough money in the system.