Asked by Daniel Juarez on May 06, 2024
Verified
Monetarists argue that business fluctuations are caused by
A) excessive government spending.
B) ups and downs in the growth of the money supply.
C) changes in tax rates.
D) changes in transfer payments.
Business Fluctuations
Variations in the growth rate of an economy over time, including periods of expansion and contraction.
Money Supply
The overall volume of fiscal assets in an economy, which includes cash, coins, and amounts in checking and savings accounts, at a certain time.
- Familiarize yourself with the essential principles of monetarism and its tactics for economic oversight.
Verified Answer
LM
lyeshia martinezMay 09, 2024
Final Answer :
B
Explanation :
Monetarists believe that changes in the supply of money in the economy is the main cause of business fluctuations. Increases in the money supply can lead to inflation and a general increase in demand, which can result in economic expansion. Conversely, decreases in the money supply can lead to deflation and a general decrease in demand, which can result in economic contraction.
Learning Objectives
- Familiarize yourself with the essential principles of monetarism and its tactics for economic oversight.