The proposal to keep the quantity of money growing at a slow constant rate is an example of
A) discretionary policy.
B) an inflation rate targeting rule.
C) a constant federal funds rate rule.
D) a money targeting rule.
E) the gold standard.

Question

Quizplus · Accepted Answer

The proposal to keep the quantity of money growing at a slow constant rate is known as a money targeting rule. It involves setting a target for the growth of the money supply and adjusting monetary policy to achieve that target. It is a form of rule-based monetary policy that aims to stabilize inflation by controlling the growth of the money supply.

The Proposal to Keep the Quantity of Money Growing at a Slow