Monetarists argued that the Fed wasn't serious about adhering to a money-growth target because
A)it was unable to reduce inflation at all.
B)it tried to target three different monetary aggregates simultaneously.
C)the sacrifice ratio remained too high.
D)it gave too much weight to movements in exchange rates.

Question

Quizplus · Accepted Answer

Monetarists argued that the Fed wasn't serious about adhering to a money-growth target because it tried to target three different monetary aggregates simultaneously, namely M1, M2, and M3. This made it difficult for the Fed to control the money supply as effectively, leading to doubts about their commitment to the monetarist approach.

Monetarists Argued That the Fed Wasn't Serious About Adhering to a Money-Growth