Economics 9708 · AS & A Level · Monetary policy

Monetary policy — practice question

Which statement would agree with a monetarist view of how the macroeconomy functions?

  • AThe demand for money function can shift in an unpredictable way.
  • BThe velocity of circulation of money is unstable over time.
  • CInterest rates have little effect on aggregate money expenditure.
  • DA sustained inflation is always associated with an increasing money supply.

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