Ryan Norton
10/21/2024 · Primary School

According to the monetarists, which of the following is true? A rapid growth rate of the money supply will lead to no change in real GDP. A reduction in the money supply will cause consumers to increase spending. A reduction in the money supply will cause a proportional reduction in wages and prices, leaving output unchanged. Instability in the money supply is the primary cause of economic instability.

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Monetarists believe that rapid growth in the money supply won't change real GDP.

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