The monetary rule is the view of the:
A) Keynesians that monetary policy is most important.
B) Monetarists that monetary policy is most important.
C) Classical economists that monetary policy is most important.
D) Monetarists that the Fed should expand the money supply at a constant rate.

Question

Quizplus · Accepted Answer

The monetary rule is a concept endorsed by monetarists, who argue that the central bank should expand the money supply at a constant rate to achieve economic stability and predictability. This is achieved by targeting a specific growth rate for a specific monetary aggregate such as M2.

The Monetary Rule Is the View of The