In the 1960s and 1970s,the primary indicator of monetary policy was
A)movement of long-term interest rates.
B)the growth rate of real government expenditures.
C)the growth of the M1 money supply.
D)changes in the nominal (dollar)size of budget deficits or surpluses.

Question

Quizplus · Accepted Answer

In the 1960s and 1970s, the primary indicator of monetary policy was the growth of the M1 money supply. This was due to the adoption of the monetarist view, which emphasized controlling the money supply to stabilize the economy. The Federal Reserve focused on controlling M1 growth as a way to control inflation and promote economic growth.

In the 1960s and 1970s,the Primary Indicator of Monetary Policy