The argument advanced by economist Milton Friedman for adopting a monetary growth rule is that
A)active monetary policy potentially destabilizes the economy.
B)central banks can control the money supply, but not the level of interest rates.
C)a constant rate of growth in the money supply would eliminate the booms and recessions that make up the business cycle.
D)the growth rate of M1+ has been unstable.
E)active monetary policy is the only defense a modern economy has against recession.

Question

Quizplus · Accepted Answer

Milton Friedman argued that active monetary policy could destabilize the economy, and a monetary growth rule would provide stability by avoiding discretionary policy changes.

The Argument Advanced by Economist Milton Friedman for Adopting a Monetary