Question

Traditional monetarists advocate for a rule for _____________ , while market monetaristsargue that monetary policy should focus on a ______________________.a. nominal GDP target; money supply growthb. Real GDP target; nominal GDP targetc. money supply growth; Real GDP targetd. money supply growth; nominal GDP target

Answer 1

Answer:

D. money supply growth; nominal GDP target

Answer 2

Answer: Money supply growth; Nominal GDP target.

Explanation:

Monetarism is a macroeconomic term proposed by Milton Friedman where he argued that the fluctuations in the economy such as recession and inflation are as a result of monetary policies.

Traditional monetarists support constant growth in money supply as a method of keeping inflation low. On the other hand, market monetarists believe that the central banks of a country should target the maintenance of a constant expansion of the nominal gross domestic product.