The argument advanced by Milton Friedman for adopting a monetary growth rule is that
A)active monetary policy potentially destabilizes the economy.
B)the Fed can control the money supply,but not the level of interest rates.
C)a constant rate of growth in the money supply would eliminate the booms and recessions that make up the business cycle.
D)the growth rate of M1 has been unstable.

Question

Quizplus · Accepted Answer

Friedman argued that active monetary policy could lead to economic instability due to time lags and incorrect predictions, advocating for a steady, predictable increase in the money supply instead.

The Argument Advanced by Milton Friedman for Adopting a Monetary