Monetarists think that the Fed should use ________ as a target when conducting monetary policy.
A)the money supply
B)the federal funds rate
C)the Treasury bill rate
D)the inflation rate
E)the unemployment rate

Question

Quizplus · Accepted Answer

Monetarists, such as Milton Friedman, advocate for targeting the money supply as they believe it directly impacts inflation and economic activity, making it the most effective tool for conducting monetary policy.

Monetarists Think That the Fed Should Use ________ as a Target