With reference to the monetarist view of inflation which of the following statements is/are correct?
A. For monetarists, a particular level of money supply for a particular level of production is healthy for an economy.
B. According to monetarists extra creation of money over the same level of production causes inflation.
C. The monetarists suggested proper monetary policy to check the situations of inflationary pressure on the economy.
D. All of the above
Answer:D
With reference to the monetarist view of inflation which of the following statements is/are correct?
A. For monetarists, a particular level of money supply for a particular level of production is healthy for an economy. B. According to monetarists extra creation of money over the same level of production causes inflation. C. The monetarists suggested proper monetary policy to check the situations of inflationary pressure on the economy. D. All of the above
Explanation: For monetarists, a particular level of money supply for a particular level of production is healthy for an economy. Extra creation of money over the same level of production causes inflation. They suggested proper monetary policy (money supply, interest rates, printing of currencies, public borrowing, etc.) to check the situations of inflationary pressure on the economy. Monetarists cancelled the Keynesian theory of inflation.