According to monetarists: an expansionary fiscal policy will lower interest rates and overstimulate the economy. the supply of money changes in response to changes in the levels of real output and prices. changes in the money supply are the primary cause of changes in the price level. changes in the velocity of money are more important than changes in the money supply in causing the level of economic activity to change.
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According to monetarists: an expansionary fiscal policy will lower interest rates and overstimulate...
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