The Monetarists' Prescription for Monetary Policy Is Called the "Monetary

question 301

Multiple Choice

The monetarists' prescription for monetary policy is called the "monetary rule." The monetary rule means that

• A)monetary policy does not have an impact on the economy until 6 to 9 months after the money supply is changed.
• B)expansionary fiscal policy should be accompanied by an easy monetary policy.
• C)the annual rate of increase in the money supply should be equal to the long-term increase in the price level.
• D)the rate of increase in the money supply should be slow and steady;for price stability it should equal the potential annual growth rate of real GDP.

---

Definitions:

Credit Information

Data related to a person's or organization's credit history and current credit status, used by lenders to assess creditworthiness.

Credit Information

Data that relates to the creditworthiness of an individual or company, including transaction history and financial behavior.

Ethical Obligation

A moral responsibility or duty that guides individuals' actions and decisions, often determined by societal norms or professional guidelines.

Legal Obligation

A duty bound by law, requiring individuals or organizations to act or abstain from acting in a specified manner.