The Monetarist View of Discretionary Monetary Policy Is That

question 30

Multiple Choice

The monetarist view of discretionary monetary policy is that:

• A)its use has tended to destabilize the economy
• B)it doesn't work because M and V always vary in opposite directions
• C)it is a weaker stabilization tool than fiscal policy
• D)it should be used only in combination with fiscal policy to stabilize the economy
• E)it doesn't work because P and Q always move in opposite directions

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