Question

Which statement best describes the idea of monetarism?

A. Aggregate supply and demand can only be influenced through fiscal policy.
B. Changes in consumer behaviors should not be influenced by policy.
C. Monetary policy is the best way to influence economic growth.
D. The money supply should not be the determining factor when influencing economic events.

Answer 1

C. Monetary policy is the best way to influence economic growth.

Step-by-step explanation:

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Answer 2

C. Monetary policy is the best way to influence economic growth.

Monetarism emphasizes on the macroeconomic impact of the supply of money and the role of the central bank. The theory was formulated by Milton Friedman and it postulates that monetary authorities should focus on price stability in influencing the economy.