Which of the Following Are TRUE Regarding Milton Friedman's K-Percent

question 4

Multiple Choice

Which of the following are TRUE regarding Milton Friedman's k-percent money targeting rule?
i. Currently this policy is used by many policy makers.
ii. This rule sets the growth rate of the quantity of money independently of the economy's behavior.
iii. For this policy to work well, the velocity of circulation must be stable.

• A) i only
• B) ii only
• C) ii and iii
• D) i and ii
• E) iii only

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Definitions:

Extinction

The gradual weakening and eventual disappearance of a conditioned response when the conditioned stimulus is no longer paired with the unconditioned stimulus.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with an unconditioned stimulus, evokes a conditioned response.

Unconditioned Stimulus

An unconditioned stimulus is a stimulus that automatically triggers a reflexive response without any prior learning or conditioning.

Discrimination

Unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.