An economic theory holding that the constant gradual expansion of the money supply is the key to a nation's economic health is

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Business

Shayna Grimes

15 December, 20:17

An economic theory holding that the constant gradual expansion of the money supply is the key to a nation's economic health is

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Josh Manning · Answer 1

An economic theory holding that the constant gradual expansion of the money supply is the key to a nation's economic health is monetarism. Those who believe in and use the economic theory monetarism believe that if you have too much cash and credit in circulation then too much inflation will be the result. They want the government to control the money that is supplied in hopes to encourage economic growth and keep inflation down.