What Kind of Monetary Policy Rule Did Milton Friedman Advocate

question 190

Multiple Choice

What kind of monetary policy rule did Milton Friedman advocate?

• A) The money supply should increase by 3% every year.
• B) Prices should increase by 3% every year.
• C) Velocity growth should be 3% every year.
• D) Long-run economic growth should be 3%.

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Definitions:

Type A

Refers to a personality type characterized by high competitiveness, self-imposed stress, and a sense of urgency.

Type B

A personality type characterized by a relaxed, less competitive approach and lower levels of stress.

Health Effects

The alterations in health or disease status resulting from exposure to a particular agent, lifestyle, or environmental condition.

DSM-5 Criteria

The diagnostic criteria and classification of mental disorders listed in the Fifth Edition of the Diagnostic and Statistical Manual of Mental Disorders.