Economics 9708 · AS & A Level · Monetary policy

Monetary policy — practice question

Which statement could be described as monetarist rather than Keynesian?

  • AThe interest elasticity of investment expenditure is close to zero.
  • BThe money supply is the main determinant of aggregate monetary expenditure.
  • CThe money supply is the main determinant of output in the long-run.
  • DThe velocity of circulation of money is unstable over time.

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