According to Milton Friedman, if the Solow growth rate is 3 percent, then the Fed should set the annual money growth rate at
A) 3 percent.
B) less than 3 percent.
C) more than 3 percent.
D) approximately 3 percent, depending on the shocks.

Question

Quizplus · Accepted Answer

Milton Friedman advocated for a constant money supply growth rate equal to the natural growth rate of the economy, which in this case is 3 percent.

According to Milton Friedman, If the Solow Growth Rate Is