The proposal to keep the quantity of money growing at a slow constant rate is an example of
A) an exchange rate targeting rule.
B) Friedman's k- percent rule.
C) an inflation rate targeting rule.
D) the McCallum rule.

Question

Quizplus · Accepted Answer

Friedman's k-percent rule proposes that the quantity of money should grow at a slow constant rate of k percent per year to ensure steady economic growth without causing inflation.

The Proposal to Keep the Quantity of Money Growing at a Slow