An economic theory called monetarism holds that

An economic theory called monetarism holds that







A) government should stimulate economic growth by injecting large amounts of money into the economy by keeping interest rates low.

B) stimulating supply through lower taxes is the key to economic health.

C) the supply of money is the key to the nation's health, and having too much cash and credit in circulation stimulates inflation.

D) government should not meddle with the economy.

E) government spending can help the economy weather its normal ups and downs, even if it means running up a debt.










Answer: C


AP Government

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