To implement the Friedman rule for long-term monetary policy, the monetary authority would need to set the
A) inflation rate equal to zero.
B) nominal rate of interest equal to zero.
C) real rate of interest equal to zero.
D) money growth rate equal to zero.
Question 2
According to Irving Fisher, velocity ________.
A) is determined by institutions that affect the way individuals transact
B) is affected by institutions only gradually
C) is assumed constant in the short run
D) all of the above
E) none of the above
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No payments were made on a $2,598 loan during its three-year term. What was the annually ...