AddieBffMaddie6803 AddieBffMaddie6803
  • 29-08-2020
  • Business
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eco 203 According to monetarists, if the money supply expands, how are households most likely to respond

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ProfChris1
ProfChris1 ProfChris1
  • 29-08-2020

Answer:

They will spend it

Explanation:

According to Monetarists, when money supply increases/expands, economic activity will increase. That means households will respond to such change by spending it.

The Monetarist Theory is an economic concept which postulates that when there is a change in money supply, the rate of economic growth and behavior of business cycle is determine.

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