Milton friedman would have liked the fed to follow a


Milton Friedman would have liked the Fed to follow a monetary rule where the A.interest rate is increased every year by a percentage rate equal to the long-run growth rate of real GDP B.money supply is increased every year by a percentage rate equal to the long-run growth rate of real GDP. C.money supply is increased every year by a percentage rate equal to the short-run growth rate of nominal GDP. D.money supply is kept unchanged as Milton Friendman did not want the Fed to intervene with the market economy. (13.2) Support for a monetary rule of the kind advocated by Friendman declined since 1980 because A. the Fed had actually practiced inflation targeting for a few years before the 1980s with very unfavorable results. B. the Fed's performance since 1980 has been excellent even without a formal inflation target. C.the large following of Milton Friedman has dwindled since 1980s. D. other countries that follow inflation targeting have had less than a desirable effect on their economy.

Request for Solution File

Ask an Expert for Answer!!
Business Economics: Milton friedman would have liked the fed to follow a
Reference No:- TGS01490247

Expected delivery within 24 Hours