An alternative way to achieve some of the benefits if the Friedman rule would be to

Question

Quizplus · Accepted Answer

Paying interest on the component of outside money held by financial institutions as deposits at the central bank would encourage individuals to hold money rather than invest in other assets, creating the same benefits as the Friedman rule. This would also create a way for the central bank to influence interest rates without requiring open-market operations, allowing for greater flexibility in monetary policy. The other options do not directly address the benefits of the Friedman rule.

An Alternative Way to Achieve Some of the Benefits If