Economist Milton Friedman Called for a Policy Rule That Keeps

Multiple Choice

Economist Milton Friedman called for a policy rule that keeps the growth rate of the money supply at 3% because:

A) real shocks on average are 3% of real GDP.
B) spending shocks on average are 3% of real GDP.
C) the economy's long-run potential growth rate is 3%.
D) the money supply has grown on average at 3% historically.