Maintaining the growth of the money supply at a constant rate is an example of a...

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Maintaining the growth of the money supply at a constant rate is an example of a O A. the gold standard. OB. an inflation tar

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Answer 1

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Ans. Correct Option is C.

An example of this rule is the k- percent rule , which was coined by Friedman , and it meant that central bank should grow and increase the money supply at a constant rate . He said that the growth rate should be around 3 to 5 % each year.

k = growth rate of GDP (potential)

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