An Alternative Way to Achieve Some of the Benefits If

question 16

Multiple Choice

An alternative way to achieve some of the benefits if the Friedman rule would be to

• A) suspend paying interest on the national debt.
• B) pay interest on the component of outside money held by financial institutions as deposits at the Bank of Canada.
• C) adopt a fixed exchange rate.
• D) prohibit the central bank from conducting open-market operations.
• E) reduce inflation rates to zero.

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