Monetarists think that the Bank of Canada should use ________ as a target when conducting monetary policy.
A)the money supply
B)the overnight interest rate
C)the Treasury bill rate
D)the inflation rate
E)the unemployment rate

Question

Quizplus · Accepted Answer

Monetarists, following the theories of Milton Friedman, believe that controlling the money supply is the most effective way to regulate the economy and control inflation, thus advocating for it as the target in monetary policy.

Monetarists Think That the Bank of Canada Should Use ________