Question 1
Monetarists argue that the money supply should
◦ grow at a rate equal to the average growth of real output.
◦ grow at a rate slower than the average growth of real output.
◦ grow at a rate greater than the average growth of real output.
◦ be held constant over the business cycle.
Question 2
Monetarists and Keynesians
◦ disagree on the speed at which wages change.
◦ agree on the impact of fiscal policy on the economy.
◦ disagree on how the Fed changes money supply.
◦ agree on the usefulness of discretionary policy.
