Which of the following statements about monetarism is true?
A. It believes that too much money in circulation leads to high inflation.
B. It advocates cutting taxes and deregulating business to stimulate the economy.
C. It believes that too much money in circulation creates deflationary pressures on the economy.
D. It argues for the deregulation of the money supply.
E. It is based on the belief that discretionary spending by the government is necessary for a healthy economy.
Answer: A
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Which of the following creates independent agencies?
a. Congress b. the President c. other federal agencies d. members of the Cabinet
Monetarists argue that government can control the economy's performance simply by
A) raising the interest rate. B) cutting back on loans. C) reducing the interest rate. D) controlling the money supply. E) printing more money.