Answer to Question #298033 in Macroeconomics for hana

Question

Indicate whether you agree and disagree with the following statements. Note that you need to write the justification that support your response.

1. Monetary policy has an impact on output and price in monetarism school of thought

Answer 1

True I agree fully with the monetary school of thought.

This is because the total supply of money in an economy is the primary determinant of economic growth as the availability of money increases, it leads to an increase in aggregate demand for goods and services.