Answer: Monetarism.
Monetarism is an economic theory that argues that money supply is the main driver of economic growth. As the money supply increases, people demand more products, factories increase productivity and new jobs are created. The increasing money supply, however, only provides a temporary boost, as in the long run it is likely to increase inflation.
Monetarists favour monetary policy over fiscal policy (government spending and tax policy).
Answer:
Monetarism, is the right answer.
Explanation:
In monetary economics, the view that gave stress on the role of the state in influencing the amount of currency in circulation is known as the Monetarism. According to this theory, fluctuations in the supply of money in the short run have a significant impact on national output and in the long run, it has a great influence on price levels.
