Monetarists Generally Propose That the Government Should

Multiple Choice

Monetarists generally propose that the government should

A) use active monetary policy to stabilize the economy since fiscal policy has no credibility
B) let money supply grow whenever budget deficits increase to keep interest rates low
C) always lower monetary growth gradually so inflationary expectations have time to adjust
D) target nominal interest rates rather than real interest rates, since real interest rates are hard to determine
E) none of the above