Milton Friedman Argued That the Fed's Control Over the Money

question 192

Multiple Choice

Milton Friedman argued that the Fed's control over the money supply could be used to peg

• A)the level or growth rate of a nominal variable, but not the level or growth rate of a real variable.
• B)the level of a nominal or real variable, but not the growth rate of a real or nominal variable.
• C)the level or growth rate of a real variable, but not the level or growth rate of a nominal variable.
• D)both levels and growth rates of both real and nominal variables.

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Definitions:

U.S. Dollar

The official currency of the United States, widely used as a benchmark in international trade and financial transactions.

Real Interest Rates

The interest rate modified to account for inflation, indicating the actual cost of borrowing and the genuine return for investors.

Appreciate

To increase in value or worth over time, commonly used in financial contexts.

Depreciate

The process by which an asset's value decreases over time due to use, wear and tear, or obsolescence.