What kind of monetary policy rule did Milton Friedman advocate?
A) The money supply should increase by 3% every year.
B) Prices should increase by 3% every year.
C) Velocity growth should be 3% every year.
D) Long-run economic growth should be 3%.

Question

Quizplus · Accepted Answer

Milton Friedman advocated for a monetary policy rule in which the money supply should increase by a fixed percentage each year, typically around 3%. He believed that a stable increase in the money supply would help stabilize the economy and prevent inflation. This approach is known as monetarism.

What Kind of Monetary Policy Rule Did Milton Friedman Advocate