Question

Nobel laureate Milton Friedman and his followers belong to a school of thought known as monetarism. What do the monetarists argue the Fed should​ target?

A. The Fed should target NEITHER the interest rate nor the money supply.
B. The Fed should target BOTH the interest rate and the money supply.
C. The Fed should target the money​ supply, not the interest​ rate, and that it should adopt the monetary growth rule.
D. The Fed should target the interest​ rate, not the money​ supply, and that it should adopt the monetary growth rule.

Answer 1

C. The Fed should target the money​ supply, not the interest​ rate, and that it should adopt the monetary growth rule.