What strict rule did Milton Friedman believe would provide for greater price stability?
A) GDP should not go above 5%.
B) Unemployment should never be above 10%.
C) Inflation should stay below 3% a year.
D) Money supply should grow by 3% annually.

Question

Quizplus · Accepted Answer

Milton Friedman, a prominent economist, advocated for a constant monetary growth rule. He suggested that the money supply should increase at a constant rate, roughly around 3% annually, which he believed would lead to greater price stability and prevent the boom-bust cycles associated with discretionary monetary policy.

What Strict Rule Did Milton Friedman Believe Would Provide for Greater