Monetarists can be described as a group of macroeconomists whoGroup of answer choicesemphasis the importance of the Federal Government's involvement in the economy to dampen the harmful effects of the business cycle.emphasis the importance of the money supply as a determinate of macroeconomic activity.tend to view government spending and taxation policy as the chief means of stabilizing the economy.feel that money should not be created in the private banking system, but only by government.

Monetarists prefer the Fed Group of answer choicesset a rule for the growth of the money supply consistent with expected growth of the economy.employ the Quantity Theory of Money to stop inflation.manage the economy by focusing on the Federal funds rate.increase or decrease the required reserve ratio to solve inflation or recession.

State briefly the key propositions of Monetarists School of Macro Economics.

The banking system increases the money supply by creating Group of answer choicescheckable deposits.currency.checkable deposits and currency.Federal Reserve Notes.

Monetary policy refers to Group of answer choicesactions taken by banks and other financial istitutions regarding their approaches to lending, account management, etc.changes in the money supply to achieve particular economic goals.changes in government expenditure and taxation to achieve particular economic goals.the change in private expenditures that occurs as a consequence of changes in the money supply

To increase the money supply, the central bank can _____________.a.Cut taxesb.Purchase bonds in the open-marketc.Encourage people to held more cash (currency in circulation)d.Increase the government spending