Problem
1. How does the monetarist view on monetary policy differ from the Keynesian position?
2. Explain the monetarist view of the business cycle. Does the empirical evidence support or conflict with the monetarist view of economic instability? Cite evidence.
3. Explain why monetarists do not believe that fiscal policy is very effective.
4. Indicate why you either support or oppose the view that a "monetary rule" forcing the Federal Reserve to expand the money supply at a constant fixed rate (for example, 3 percent annually) should be substituted for the Fed's current discretionary control over the money supply.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.