Classical economists or modern day monetarists would suggest that the Fed should
a. always lower the discount rate in order to combat recessions
b. increase the reserve requirement in order to reduce the threat of inflation
c. set the rate of increase in the money supply to be approximately equal to the economy's long-run full-employment rate of growth
d. set the rate of increase in the money supply to be approximately equal to the discount rate
e. use its tools, such as raising the discount rate, increasing the reserve requirement,and selling securities, in order to bring inflation down to 0 percent
C
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Which of the following people is least likely to clip store coupons?
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