Question

In the Monetarist view, if the money supply has been rising too quickly for years, the resulting inflation can be brought under control by slowing money growth. This A. would move us up the Phillips curve, reducing unemployment B. may not decrease inflation due to rational expectations C. will increase unemployment depending upon how quickly the public changes their inflation expectations D. will decrease unemployment depending upon how quickly the public changes their inflation expectations

Answer 1

"C"

This will increase the unemployment in the market as the prices fall , how long the situation continues will depend on the public expectations. the answer is "C".