Economists Who Propose a Constant-Money-Growth-Rate Rule Often Argue That Setting

question 9

Multiple Choice

Economists who propose a constant-money-growth-rate rule often argue that setting the annual growth rate in the money supply equal to the average annual growth rate in Real GDP

• A) maintains price level stability over time.
• B) is a way to raise Real GDP.
• C) will cause the price level to fall over time.
• D) a and b
• E) a,b and c