Which economist is known for the concept that the money supply should adjust in response to shifts in aggregate demand?

Multiple choice question for Fiscal And Monetary Policy. Select an option, then review the explanation below.

Explanation

The idea that the money supply ought to vary to match changes in aggregate demand is attributed to Milton Friedman, who emphasized the role of monetary policy in economic stability. The other figures listed are not primarily associated with this monetary theory.

Practice related questions from the same subject.

1.Why might a government impose taxes on certain goods or services?
2.Which statement accurately describes a regressive tax system?
3.What is the automatic effect on the government's budget balance when the economy experiences growth?
4.If the marginal tax rate is 40% and an individual's income rises from Rs 10,000 to Rs 12,000, what will be the total tax amount paid?
5.Which of the following actions aligns with a reflationary (expansionary) fiscal policy?

Which economist is known for the concept that the money supply should adjust in response to shifts in aggregate demand?

Explanation

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