The idea that the money supply should change to accommodate changes in aggregate demand is associated with the idea of ?
Correct answer: C. Milton Friedman
- A. Margaret Thatcher
- B. Ronald Reagan
- C. Milton Friedman
- D. John Maynard Keynes
Explanation
Milton Friedman’s monetarist approach gives the money supply a central role in stabilising aggregate demand and the price level. Thatcher and Reagan are associated with policies influenced by monetarism, but Friedman is the economist linked to the idea.
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