To implement the Friedman rule for long-term monetary policy,the monetary authority would need to set the

Question

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According to the Friedman rule, the nominal interest rate should be set at zero to achieve long-term monetary stability. This is because if the nominal interest rate is set at zero, the real interest rate (nominal rate minus the inflation rate) would also be zero, which would encourage saving and investment, and stabilize the economy in the long run. The other options are not consistent with the Friedman rule, as they do not address the need for keeping nominal interest rates at zero.

To Implement the Friedman Rule for Long-Term Monetary Policy,the Monetary