According to the monetarists

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According to the monetarists, which of the following is true?

1- Instability in the money supply is the primary cause of economic instability.

2- A reduction in the money supply will cause consumers to increase spending.

3- A rapid growth rate of the money supply will lead to a rapid growth rate of real GDP.

4- A reduction in the money supply will cause a proportional reduction in wages and prices, leaving output unchanged.

Reference no: EM13685055

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