
The Friedman rule for optimal money growth is that
A) inflation and aggregate output grow at the same rate.
B) the money supply and aggregate output grow at the same rate.
C) the real wage rate and aggregate output grow at the same rate.
D) money should grow at a rate that implies that the nominal interest rate is zero.
E) money should grow at a rate that implies that the real interest rate is zero.
Correct Answer:
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