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Milton Friedman,a Leading Monetarist,believes the Fed Should Not Manage the Money

Question 44

Multiple Choice

Milton Friedman,a leading monetarist,believes the Fed should not manage the money supply in a discretionary manner.Which of the following statements is NOT a reason for Friedman's belief?


A) The limitations of our knowledge make any discretionary policy very unpredictable.
B) The past performance of the Fed has not given a strong indication that it has the ability to regulate the money supply in such a manner.
C) Friedman advocates the rule of steady monetary growth.
D) Discretionary monetary policy promotes confidence within the business community by providing a greater amount of stability to money and credit.

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