milton friedman helped to establish the economic theory of monetarism. which statement best describes the…

milton friedman helped to establish the economic theory of monetarism. which statement best describes the idea of monetarism? aggregate supply and demand can only be influenced through fiscal policy. changes in consumer behaviors should not be influenced by policy. monetary policy is the best way to influence economic growth. the money supply should not be the determining factor when influencing economic events.

milton friedman helped to establish the economic theory of monetarism. which statement best describes the idea of monetarism? aggregate supply and demand can only be influenced through fiscal policy. changes in consumer behaviors should not be influenced by policy. monetary policy is the best way to influence economic growth. the money supply should not be the determining factor when influencing economic events.

Answer

Brief Explanations:

Monetarism emphasizes that changes in the money - supply have significant impacts on economic activity and that monetary policy is crucial for influencing economic growth. Fiscal policy is not the only way to influence aggregate supply and demand as monetarists believe in the power of monetary policy. Also, consumer behavior can be influenced by policy in monetarist views and the money - supply is a key determining factor.

Answer:

Monetary policy is the best way to influence economic growth.