The k- percent rule, an example of a money targeting rule, relies on a relatively stable

Question

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The k-percent rule is a money targeting rule that relies on a relatively stable demand for money in the economy. It suggests that the central bank should aim to increase the money supply at a steady rate each year, typically equal to the growth rate of real GDP plus a desired inflation rate. By focusing on the growth of the money supply, the k-percent rule aims to stabilize the economy and keep inflation under control. Therefore, the answer is A as it is the only choice that is directly related to the money supply.

The K- Percent Rule, an Example of a Money Targeting