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Economics (AS & A Level) · Oct / Nov 2022 · Paper 32 · Question 25

9708Monetary policy

What do Monetarists believe?

  1. AEconomies are naturally unstable.
  2. BPolicy makers should follow set rules targeting the money supply.
  3. CThe aggregate supply curve has a slight slope.
  4. DWage movements are 'sticky' downwards.

As printed in the paper

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Correct answer: B. Policy makers should follow set rules targeting the money supply.

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