According to the monetarist theory, an increase in government spending

According to the monetarist theory, an increase in government spending would have

a. only weak effects on both output and the price level.
b. a weak effect on output with a strong effect on the price level.
c. a weak effect on the price level but a strong output effect.
d. stronger effects on output if financed with increases in the money supply.
e. both a and d.

ANSWER

E