Answered

Find the best answers to your questions at Westonci.ca, where experts and enthusiasts provide accurate, reliable information. Explore thousands of questions and answers from a knowledgeable community of experts ready to help you find solutions. Get detailed and accurate answers to your questions from a dedicated community of experts on our Q&A platform.

Monetarists argue that the Federal Reserve System should
A. institute a prescribed rate of growth in the money supply.
B. self-correction is less effective than activist monetary policy.
C. policymakers should use monetary policy rather than fiscal policy to stabilize the economy.
D. since velocity is unstable, a fixed annual increase in the money supply will exacerbate inflation in the long run.

Sagot :

Baraq

Answer:

C. policymakers should use monetary policy rather than fiscal policy to stabilize the economy.

Explanation:

Monetarists argue that the Federal Reserve System should "use monetary policy rather than fiscal policy to stabilize the economy."

According to monetarists, a monetary policy is a policy that involves the regulation or control of money supply, including the rate of interest such that it regulates the microeconomic of a nation. Hence, Monetarists argue that the Federal Reserve System should "use monetary policy rather than fiscal policy to stabilize the economy, " because it helps in the control of inflation, consumption, development, and cash flow.

Thanks for stopping by. We are committed to providing the best answers for all your questions. See you again soon. Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. Keep exploring Westonci.ca for more insightful answers to your questions. We're here to help.