Nobel Laureate Milton Friedman proposed to deliver a stable price level and small business cycle fluctuations.

Question

Quizplus · Accepted Answer

The k-percent rule, proposed by Friedman, suggests that the money supply should be increased at a fixed rate of k percent per year to achieve a stable price level and limit business cycle fluctuations. This is different from inflation targeting (B), which aims to keep inflation within a specific range, and the Taylor rule (A) and McCallum rule (D), which both use interest rates as a tool to stabilize the economy. Therefore, the best choice is C.

Nobel Laureate Milton Friedman Proposed to Deliver a Stable Price