An Erratic Monetary Policy and Its Impact on Business Instability and Inflation

An Erratic Monetary Policy and Its Impact

Prev Question Next Question

Question

"An erratic monetary policy is the primary sources of business instability and inflation." This view is held by

Answers

Explanations

Click on the arrows to vote for the correct answer

A. B. C. D.

A

Monetarists believe that monetary policy has a powerful influence on the economy but also realize that there are lengthy and unpredictable time lags between the implementation of a monetary policy and the realization of its primary effects. Hence, an erratic monetary policy can lead to big instabilities in the economy.