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Answer to Question #163693 in Macroeconomics for Chris Jericho

Question #163693

In what way is it favourable to monetarist views if the demand for money is correctly specified in real terms?


1
Expert's answer
2021-02-16T05:43:14-0500

It helps to justify to the government that fiscal policy is ineffective in affecting employment and real output in any significant manner since Fiscal policy also does not appreciably influence price level.


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