The monetarists believe

A) the Federal Reserve is very effective at fighting inflation.
B) the key to stable economic growth is a constant rate of increase in the money supply.
C) expansionary monetary policy will permanently reduce the interest rate.
D) the money supply must increase at the same rate as the price level.

Monetarists

Economists who believe that changes in the money supply have major influences on national output in the short run and the price level over longer periods.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, often measured by GDP.

Money Supply

The total amount of monetary assets available in an economy at a specific time, including cash, bank deposits, and liquid assets.