What kind of monetary policy rule did Milton Friedman advocate?
A) The money supply should increase by 3 percent each year.
B) Prices should increase by 3 percent each year.
C) Economic growth should be 3 percent every year.
D) Long-run economic growth should be 3 percent.

Question

Quizplus · Accepted Answer

Milton Friedman advocated for a monetary rule that targeted a steady growth rate of the money supply, typically around 3-5% per year. He argued that this rule would prevent inflation and provide a stable foundation for economic growth.

What Kind of Monetary Policy Rule Did Milton Friedman Advocate