Which of the statements best describes the monetary rule, as proposed by the economist Milton Friedman? An acceptable rate of unemployment is targeted and the money supply is adjusted accordingly. Inflation is kept in check by directly manipulating interest rates to decrease bond prices. Inflation is kept in check by increasing the growth of M1 and decreasing the growth of M2 in equal amounts. Inflation is kept in check in the long run by keeping the growth of M1 and M2 on a steady path.
Which of the statements best describes the monetary rule, as proposed by the economist Milton Friedman? An acceptable rate of unemployment is targeted and the money supply is adjusted accordingly. Inflation is kept in check by directly manipulating interest rates to decrease bond prices. Inflation is kept in check by increasing the growth of M1 and decreasing the growth of M2 in equal amounts. Inflation is kept in check in the long run by keeping the growth of M1 and M2 on a steady path.
Chapter16: Monetary Policy
Section: Chapter Questions
Problem 13SQ
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Which of the statements best describes the monetary rule, as proposed by the economist Milton Friedman?
An acceptable rate of unemployment is targeted and the money supply is adjusted accordingly.
Inflation is kept in check by directly manipulating interest rates to decrease bond prices.
Inflation is kept in check by increasing the growth of M1 and decreasing the growth of M2 in equal amounts.
Inflation is kept in check in the long run by keeping the growth of M1 and M2 on a steady path.
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