Traditional monetarists advocate for a rule for _____________ ,while market monetarists argue that monetary policy should focus on a ______________________.
A) nominal GDP target; money supply growth
B) Real GDP target; nominal GDP target
C) money supply growth; Real GDP target
D) money supply growth; nominal GDP target

Question

Quizplus · Accepted Answer

Traditional monetarists, following Milton Friedman's ideas, advocate for a rule that focuses on controlling the growth rate of the money supply. Market monetarists, on the other hand, suggest that monetary policy should aim at stabilizing the growth rate of nominal GDP, arguing that this approach better addresses both inflation and economic stability.

Traditional Monetarists Advocate for a Rule for _____________ ,While Market