Monetarists argue that the Federal Reserve should allow the money supply to grow:
A) counter to the business cycles.
B) faster than 10 percent annually.
C) only during recessions.
D) at a constant rate.

Question

Quizplus · Accepted Answer

Monetarists believe that a constant, predictable growth rate of the money supply is necessary to maintain stable economic growth and that deviations from this rate can cause economic instability.

Monetarists Argue That the Federal Reserve Should Allow the Money