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C. Some people will argue against using either monetary or fiscal policy, instead supporting a
laissez-faire approach to the economy. The well-known economist Milton Friedman, for
example, believed in the permanent income hypothesis and was also a monetarist. What
monetary policy prescription do monetarists support? (2 points)
Solution
Monetarism relies on the predictability of velocity rather than absolute stability,.
Monetarism is a mixture of theoretical ideas, philosophical beliefs, and policy prescriptions, they
are as follows.

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  • 1. C. Some people will argue against using either monetary or fiscal policy, instead supporting a laissez-faire approach to the economy. The well-known economist Milton Friedman, for example, believed in the permanent income hypothesis and was also a monetarist. What monetary policy prescription do monetarists support? (2 points) Solution Monetarism relies on the predictability of velocity rather than absolute stability,. Monetarism is a mixture of theoretical ideas, philosophical beliefs, and policy prescriptions, they are as follows.