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The Monetary Policy Rule Suggests That

Question 101
Multiple Choice

The monetary policy rule suggests that: A) we should follow the rules set by the Fed. B) the Fed should follow the rules set by Congress. C) the interest rate should grow at a slow and steady pace. D) the money supply should grow at a slow and steady pace.

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Q 102
The Fed moved away from a monetary growth rule because _____ was/were unstable. A) the economy B) the money supply C) the velocity of money D) interest rates
Q 103
Monetarists argue that: A) the impact lag for monetary policy is short and predictable. B) stabilization policies may actually be destabilizing. C) the Federal Reserve System should use active monetary policy. D) active monetary policy should be used to reinforce active fiscal policy.
Q 104
Milton Friedman was a leader and major proponent of: A) monetarism. B) classical economics. C) Keynesian economics. D) rational expectations theory.
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