Which of the statements best describes the monetary rule, as proposed by the economist Milton Friedman?

Inflation is kept in check in the long run by keeping the growth of M1 and M2 on a steady path.

Inflation is kept in check by directly manipulating interest rates to decrease bond prices.

An acceptable rate of unemployment is targeted and the money supply is adjusted accordingly.

Inflation is kept in check by increasing the growth of M1 and decreasing the growth of M2 in equal amounts.

Answers

Answer 1

Answer:

A. Inflation is kept in check in the long run by keeping the growth of M1 and M2 on a steady path

Explanation:

Friedman's k-percent rule, where the money supply would be automatically increased by a fixed percentage per year. He stated that money supply should be in a steady rate in check of inflation for better economic performance.He maintained that there is a close and stable association between inflation and the money supply, mainly that inflation could be avoided with proper regulation of the monetary base's growth rate.

As originally proposed by the economist Milton Friedman, the monetary rule is a guideline for policymakers to maintain a reasonable amount of annual inflation. It is primarily accomplished by maintaining the growth rates of M1 and M2 on a steady path, in accordance with the equation of exchange.

Answer 2

Answer:

inflation is kept in check in the long run by keeping the growth of M1 and M2 on a steady path

Explanation:


Related Questions

Paraphrase When you paraphrase, you restate a text in your own words. Paraphrase Romeo’s thoughts in act III, Scene iii, lines 29-51. (b) Criticize How would you describe Romeo’s response in these lines?

Answers

The line " This is Dear mercy, and thous seest it not"  this lines depicts according to Friar, that the punishment was a type of mercy and he should be grateful.

What was the line about?

The lines from act III, scene III of Romeo and Juliet is one that  Friar Laurence  makes  Romeo to understand that he had to be grateful for this punishment given to him

When Romeo knows about his punishment for his act of killing Tybalt and that it was banishment, he informs Friar Lawrence  that he prefer death than been banished but Frair made him to see reasons why it was better.

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What factors hinder environmental protection efforts in Eastern Europe

Answers

Explanation:

The factors that hindered environmental protection efforts in Eastern Europe were economic development and enforcement.

Air pollution, water consumption and soil degradation are two of the most important environmental issues that affect Eastern Europe. The European Environment Agency (EEA) has made some efforts in order to protect vulnerable groups such as children, the elderly, and the poor in Eastern Europe. but economic problems and lack of enforcement in those countries limit the implementation of programs.

Can I get some help with this?

Answers

Answer:

use your text book if you have one

Explanation:

that will probably help a lot

When selecting federal judges is the president required to get Congressional approval? Why or why not?

Answers

Answer:

Judges of the supreme Court.” The process of appointing Justices has undergone changes over two centuries, but its most basic feature—the sharing of power between the President and Senate—has remained unchanged: To receive appointment to the Court, a candidate must first be nominated by the President and then confirmed

importance of training and development in the public sector

Answers

Explanation:

It is necessary for the public sector organisation to train and develop the skills of its personnel in order to improve organisational.,team and individual performance.

Why do people borrow money from banks?

To buy books and music
To buy large items like cars
To go to a fancy restaurant
To hide in their mattresses

Answers

Answer:

anyways the answer is B

Explanation: people only borrow money when it's important, the only thing important there is B, i also did the test and got it right and the bank wouldn't give someone money to go in a fancy restaurant or to hide their mattresses or to buy books and music.

this type of policy is most similat to which cold war idea
?

Answers

Answer:Proxy wars.During the Cold War period, the so called proxy wars, used by the United States and the Soviet Union

Explanation:

Why was Earth Day planned for April 22?
A
April 22 was Senator Nelson's birthday.

B
Most college students would be on spring break in April.

C
The weather was likely to be warm and pleasant toward the end of April.

D
Senator Nelson didn't want his new holiday to compete with the 4th of July.

Answers

B, Most college students would be on spring break in April

6. What is the "elastic clause"? Why is it called that?

Answers

Answer:

The Necessary and Proper Clause is known as the Elastic Clause because it one of the most powerful clauses of the US Constitution, it is located on Clause 18 of Article 1.Article 1 clauses 1 to 17 enlist all the power of the Congress, but Clause 18 of the same article is an “open” or “elastic” clause. It gives Congress the ability to create structures that organize the government and makes possible for the Government to write new legislation to support those explicit powers that are listed in Clauses 1 to 17.

Explanation:

Credit: barbaralazarotto

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Which of the following explains the implications of the federal government buying back its own debts from the Federal Reserve?(1 point)

The demand for Treasurys from investors and foreign governments could be diminished from the Federal Reserve buying the securities.

The money supply increases, which results in higher interest rates for the national debt, which could increase the amount spent to pay for the interest on the national debt.

The money supply decreases, which could result in a liquidity crisis for the banks and the federal government. Interest rates would decrease to help increase the money supply.

Interest rates on the national debt decrease, which decreases the amount spent to pay for the interest on the national debt. The federal government could pay for social welfare programs.

Answers

Answer:

c

Explanation:

help me out with this question in attachment​

Answers

Answer: uhh its a go ogle meeting

Explanation:

What was one benefit of being a scribe?

A) Scribes were buried in the pyramids.
B) Scribes only worked for the pharaoh.
C) Scribes were able to travel throughout the world.
D) Scribes had more comfortable lives than other people.

Answers

The answer is c because this came up before while I was in school

state 3 benefits of participating in sports​

Answers

Explanation:

participation in sport and being active can promote good mental health. This includes improving your mood, enhancing your sense of well-being, reducing anxiety, combating negative emotions and protecting against depression.

Why was the Northwest Ordinance of 1787 considered a good thing?

Answers

Answer:

Also known as the Ordinance of 1787, the Northwest Ordinance established a government for the Northwest Territory, outlined the process for admitting a new state to the Union, and guaranteed that newly created states would be equal to the original thirteen states.

Explanation:

These types of governments attempt to control all aspects of citizens' lives (an
example would be a Communist Regime, such as China)?
Oligarchy
Dictatorship
Constitutional monarchy
Totalitarian dictatorship

Answers

Answer:

dictatorship totalitarian dictatorship

Explanation:

how does teenage pregnancy at schools affect teachers​

Answers

Answer:

Teenage pregnancy has a negative impact on the pregnant learners themselves.

Explanation:

Effects of teenage pregnancy on learners at school

Teenage pregnancy has a negative impact on the pregnant learners themselves. Their situation leads to exclusion from peer groups, poor performance or even to their dropping out of school. However, sometimes their pregnancy is the result of a deliberate act because it is seen as fashionable.

Several European countries suffered from financial crises at the same time as the United States. Select the country that matches each particular crisis.

a. In 2013, ______________ suffered from an unemployment rate of 25% and huge amounts of debt.
b. ______________ suffered under interest rates of 25% after the recession hit the shipping industry hard.
c. In ______________, the newest member of the Eurozone, politicians have a great deal of control over the banking industry.
d. ______________ was unable to cut the government budget because the courts overturned key laws.
e. The crisis in ______________ began much as it did in the United States, when a housing bubble burst.
f. In spite of many bank failures, the people of ______________ did not want investors and banks to receive a government bailout.
g. ______________ remained in a recession longer than other nations, due to very slow economic growth.

WORD BANK
Ireland
Greece
Portugal
Cypress
Spain
Italy
Slovenia

Answers

Answer:

The answer is ‘Spain’

The answer is ‘Greece’

The answer is ‘Slovenia’

The answer is ‘Portugal’

The answer is ‘Ireland’

The answer is ‘Cypress’

The answer is ‘Italy’

Explanation:

While all of these countries had issues in common, particularly government budget deficits leading to high public debt and bank failures because of too many bad loans, each country put its own spin on the crisis scenario. The European Central Bank intervened to buy bad loans and extend emergency credit to the banks of each country. Generally, the ECB also insisted on budgetary reforms as part of the debt agreements.

Spain had the highest unemployment at 25% in 2014. Younger workers were particularly hard hit by unemployment.

In Greece, excessive interest rates (up to 25%) and riots were notable. The public was not in favor of the austerity measures the ECB imposed. The ECB responded by lowering its interest rate for Greece and returning interest payments it had received on Greek bonds.

Slovenia was part of Yugoslavia after World War II, a country made by a peace treaty rather than by the will of the people. The different ethnic groups did not bond well, and the country fell apart after the Soviet Union collapsed in 1990. Banks in the Warsaw Pact nations were owned by the government rather than by private investors, and Slovenia had not yet privatized all of its banks when it joined the Eurozone. This left the banking system vulnerable to political manipulation.

Like the other countries, Portugal agreed to austerity measures intended to cut government spending and get the public debt under control, but the courts struck down laws designed to cut down on spending. As a consequence, Portugal was not able to get its finances in order and unemployment rose to 18%.

Ireland was one of the first to fall into financial crisis when it suffered the bursting of a housing bubble similar to the one in the United States. In response, the government guaranteed all bank deposits against loss if the bank should failure, including the very largest accounts.

In contrast, the people of Cypress made it clear that the government bailouts should not protect the banks and investors who created the problem, so the government did not guarantee all deposits. Unfortunately, this lead to increased instability in the economy.

Italy wins first place in the public debt competition, as its debt is both larger and older than most. The public debt has been over 100% of GDP for a decade. Italy also has not seen much growth over the years, and stayed in a recession longer than the other nations of the Eurozone.

The country that matches each particular crisis is given as follows:

A - ‘Spain’B - ‘Greece’C - ‘Slovenia’D - ‘Portugal’E - ‘Ireland’F - ‘Cypress’G - ‘Italy’.

Thus, the full sentences describing the countries will be?

In 2013, Spain suffered from an unemployment rate of 25% and huge amounts of debt.Greece suffered under interest rates of 25% after the recession hit the shipping industry hard.In Slovenia, the newest member of the Eurozone, politicians have a great deal of control over the banking industry.Portugal was unable to cut the government budget because the courts overturned key laws.The crisis in Ireland began much as it did in the United States when a housing bubble burst.In spite of many bank failures, the people of Cypress did not want investors and banks to receive a government bailout.Italy remained in a recession longer than other nations, due to very slow economic growth.

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HURRY ANSWER I THINK I GONNA FAIL I WILL MARK BRAINLY ASAP. Which term refers to only small amounts of certain items such as meat, sugar, coffee, and gasoline being sold to citizens during a war? (1 point) O dictator O neutral O ration O reparation​

Answers

Answer:

looked it up

Explanation:

Answer:

The Correct Answer Is  Ration

Explanation:

Every American A Series Of RATION Books.

distinguish between right and responsibility ​

Answers

Rights are owed by the governing body to the people and responsibilities are owed by the people to the society or country.

Which statement best summarizes this passage? Segregation of schools harms African American children. Children eventually overcome the effects of segregation. Segregation is a form of separation, not discrimination. Segregation has no association with racial inferiority.

Answers

Answer: segregation of schools harm African American children

Explanation:

got it right on Edge

As segregation of schools harms African American children, were statement best summarizes this passage. Thus option (A) is correct.

What is the passage?

The length of a passage varies depending on the context and the goal of the extraction. A passage can be, for example, a sentence's clause, a few phrases, or it can be a few pages.

American children are negatively impacted by school segregation. They are unable to socialize with their classmates from different schools, which may cause social isolation. They might experience some type of discrimination and eventually retreat.

Therefore, The right option (A) is correct.

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What is Chang in demand

Answers

Answer:

A change in demand describes a shift in consumer desire to purchase a particular good or service, irrespective of a variation in its price.

Answer:

the result of a change in any of the demand, such as consumer preferences

Explanation:

A change in demand is the result of a change in any of the demand determinants, such as consumer preferences, consumer expectations, consumer income, the price of related products and the number of buyers. When consumer income decreases, consumer spending decreases; therefore, consumers spend less on any given price level.

What is the major difference between nuclear and extended families?

Answers

Answer:

The major difference between nuclear and extended families is that a nuclear family simply includes a mother, father and children, while the extended family includes them but additional members such as grandparents, aunts, uncles, nieces, nephews and more.

Explanation:

Which of the following was NOT part of the Republican party's platform in the post-Civil War period?

Answers

you didn’t post any options.

Hieratic writing was first used for ___________.

A) letter writing
B) public announcements
C) royal and sacred documents
D) government documents

Answers

Answer:

A) letter writing

Hope This Helps

Describe TWO different reasons that South Carolina’s rice plantations depended on enslaved Africans.

Answers

Because they knew how to plant, grow, harvest, and perform well through the difficulties in the labor intensive crop. They were native and experienced.

Suppose that you are employed as an advisor to the central bank. Select the proper policy recommendation or economic prediction for each of the following scenarios.
Which policy is appropriate when a rising aggregate price level is a concern but GDP is growing at an acceptable rate?
- expansionary monetary policy (easy money policy)
- It is unclear which type of monetary policy is appropriate.
- contractionary or restrictive monetary policy (tight money policy)

Which policy is appropriate when a rising aggregate price level is a concern and GDP is not growing at an acceptable rate?
- It is unclear which type of monetary policy is appropriate.
- expansionary monetary policy (easy money policy)
- contractionary or restrictive monetary policy (tight money policy)

Contractionary or restrictive monetary policy (tight money policy) will cause interest rates to
- decrease.
- increase sometimes and decrease sometimes.
- increase.

Answers

Answer:

1. contractionary or restrictive monetary policy (tight money policy)

2. It is unclear which type of monetary policy is appropriate.

3. increase.

Explanation:

Recall that monetary policy typically implies a tradeoff between GDP and inflation. This can be illustrated with a graph depicting aggregate demand (AD) and aggregate supply (AS).

Expansionary monetary policy describes actions that increase the money supply. As more money is put into circulation, the interest rate declines, and consumption and investment spending increase. Thus, expansionary monetary policy causes the AD curve to shift to the right. This increases GDP but also implies that the price level rises (also known as inflation). Contractionary monetary policy has the opposite impact: a decrease in GDP and a decrease in the price level.

For the first scenario, contractionary monetary policy is appropriate. This type of policy response would address concerns of inflation. The downward pressure on GDP is not too troubling because GDP is said to be growing at an acceptable rate.

For the second scenario, it is unclear how monetary policy should be used. Expansionary monetary policy would help stimulate GDP but would exacerbate the problems associated with inflation. Contractionary monetary policy would help with inflation but would worsen the lack of economic growth.

Contractionary monetary policy causes interest rates to increase.

Contractionary or restrictive monetary policy (tight money policy) is appropriate when a rising aggregate price level is a concern but GDP is growing at an acceptable rate. The correct option is C.

How does contractionary monetary policy affect price level?

The economy has less loanable money when there is a contractionary policy in place. The price of borrowing money increases as interest rates rise because, like with all goods, scarcity increases the price.

In this scenario, inflation is a concern as the aggregate price level is rising, indicating that the purchasing power of money is decreasing. A contractionary monetary policy, such as raising interest rates or reducing the money supply, can help to reduce inflationary pressures and stabilize prices. While this policy may slow down economic growth to some extent, it is still appropriate in this situation since GDP is already growing at an acceptable rate.

Thus, the ideal selection is option C.

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The Blackfoot hunted bison in which culture region?
O Pacific Northwest
O Southwest
O Great Plains
O Eastern Woodlands

Answers

Answer:

great plains

Explanation:

The Blackfoot (also called “Blackfeet”) are a Native American nation who were once nomadic. They migrated from the Great Lakes region to the northwestern United States. They lived in the northern Great Plains, especially in the rich bison ranges of southern Alberta and northern Montana

Answer:The answer is outhern Alberta and northern Montana.

Explanation:

You are Chair of the Federal Reserve Board. In your meeting with the Federal Open Market Committee, the committee unanimously votes to increase the money supply using open market operations (OMOs). During the press conference after the meeting, a reporter asks you to explain what OMOs are and how you will use them to increase the money supply. You reply that:

a. OMOs are the selling and buying of government securities. The money supply increases when purchasing occurs and contracts when selling occurs. OMOs work by changing the amount of excess reserves available in the banking system.
b. OMOs alter the reserve requirement up or down. The money supply will increase when we use OMOs to decrease the reserve requirement.
c. Open market operations refer to manipulating the rate at which the Federal Reserve Bank (Fed) loans money to member banks. An increase in the money supply occurs when the Fed increases this rate, which decreases the amount of required reserves in the banking system.
d. OMOs are the selling and buying of government securities. The money supply increases when selling occurs and contracts when buying occurs. OMOs work by changing the amount of excess reserves available in the banking system.

Answers

Answer:

a. OMOs are the selling and buying of government securities. The money supply increases when purchasing occurs and contracts when selling occurs. OMOs work by changing the amount of excess reserves available in the banking system.

Explanation:

OMOs are open market operations and refer to the purchase and sale of government securities by the Federal Reserve Bank (Fed) in an effort to change the money supply. If the Fed wants to increase the money supply, it will purchase government securities. The Fed buys the securities and pays for them by increasing the selling banks' reserves in their account at the Fed. The increase in reserves will increase the amount of excess reserves in the banking system and fuel deposit expansion, assuming the bank wishes to keep excess reserves at a minimum.

The answer to your question should be A.

Select all the correct answers.
What are some negative consequences of income inequality? Select all that apply from the following list:
The rich get taxed more.
There is an increase in conflict.
There is a decrease in trust among people.
There is not enough money for everyone.
There is an increase in the prices of products.

Answers

There is an increase in the prices of products

Some negative consequences of income inequality is Option(B) There is an increase in conflict , Option(D) There is not enough money for everyone and Option(E) There is an increase in the prices of products.

What is income inequality ?

Income inequality is defined as the anomaly in the distribution of pay to the several higher and lower class of workers by any organization. There are wide varieties of economic inequality, most notably income inequality measured using the distribution of income and wealth inequality measured using the distribution of wealth.

What are some negative consequences of income inequality?

The negative consequences of Income inequality are -

There is an increase in conflict and riots in several parts of the country as the lower-middle class of people demand to have a greater income as compared to the upper economic class. There is also not sufficient amount of money for the several class of people in the economic cycle. The most important cause is the rise in the prices of various products. Due to income inequality, the common person are suffering as they have to buy a product with increased price.

Thus, some negative consequences of income inequality is Option(B) There is an increase in conflict , Option(D) There is not enough money for everyone and Option(E) There is an increase in the prices of products.

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What does the ability to build great buildings out of stone tell you about maya political power?

Answers

Answer:

The ability to build great buildings out of stone tells you that Mayan political power was needed to build them. Mayan architecture was remarkable because of scale because the Mayan buildings were very big.

Explanation:

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