A Rule Specifying a Constant Rate of Growth of M1

question 11

Multiple Choice

A rule specifying a constant rate of growth of M1 during the early 1980s

• A)was adopted in the United States, but not in Japan.
• B)would have resulted in greater inflation than actually occurred.
• C)would have resulted in a more contractionary policy than the one the Fed actually pursued.
• D)was dropped following an acceleration in the inflation rate.

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