For the Fed to use money growth as a direct monetary policy target, which of the following needs to exist?

Question

Quizplus · Accepted Answer

In order for the Fed to use money growth as a direct monetary policy target, both a stable link between the monetary base and the quantity of money and a predictable relationship between the quantity of money and the rate of inflation must exist. Without these conditions being met, trying to target money growth could have unintended consequences and not effectively achieve the Fed's desired policy goals.

For the Fed to Use Money Growth as a Direct