(Last Word) Market monetarists advocate that the Fed "target the forecast" (of the predicted nominal GDP growth rate), claiming primarily that it will
A)promote economic stability by ensuring that total spending will grow at a predictable rate each year.
B)prevent high rates of inflation.
C)keep the economy at its natural rate of unemployment.
D)prevent real GDP from growing too much.

Question

Quizplus · Accepted Answer

Market monetarists believe that targeting the forecast of nominal GDP growth will stabilize the economy by ensuring predictable growth in total spending, which helps in managing economic fluctuations effectively.

(Last Word) Market Monetarists Advocate That the Fed "Target the Forecast