Most of the pressure for a monetary growth rule has disappeared because since 1980,
A) the relationship between movements in the money supply and movements in real GDP and the price level have become much weaker.
B) the relationship between movements in the money supply and movements in real GDP and the price level have become much stronger.
C) the relationship between movements in interest rates and movements in real GDP and the price level have become much weaker.
D) the relationship between movements in interest rates and movements in real GDP and the price level have become much stronger.
A
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Which of the following is the most frequently used tool the Fed uses to control the supply of money?
A. the discount rate B. the reserve requirements C. open market operations D. the 30-year home-mortgage interest rate