Advocates of nondiscretionary policy emphasize the importance of a constant money growth rate rule more than the balanced-budget amendment or restrictions on union power because
A)they regard excessive money growth as the cause of inflation.
B)they believe that excessive government spending,not excessive monetary growth,is the cause of inflation.
C)they believe that while unions cause inflation,they are too politically powerful to deal with.
D)they regard high tax rates as the cause of inflation.

Question

Quizplus · Accepted Answer

Advocates of nondiscretionary policy believe that excessive money growth is the cause of inflation. Therefore, they emphasize the importance of a constant money growth rate rule to control inflation. They do not necessarily believe that a balanced-budget amendment or restrictions on union power would be effective in addressing inflation. Additionally, they do not see high tax rates as the cause of inflation.

Advocates of Nondiscretionary Policy Emphasize the Importance of a Constant