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Believers of the Monetary Rule Advocate That the

Question 24

Multiple Choice

Believers of the monetary rule advocate that the


A) speculative demand for money should be reduced by government action.
B) money supply should grow at the same rate as the potential long-term growth rate of real GDP.
C) money supply should grow at the same rate as the rate of inflation.
D) money supply should be increased during periods of inflation and decreased during recessions.

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