Author Question: Unlike a money supply target, an inflation rate target a. will always stabilize income better. ... (Read 117 times)

ericka1 · **on:** Jun 30, 2018

Unlike a money supply target, an inflation rate target

a. will always stabilize income better.
b. will stabilize income better if velocity is unstable.
c. still allows the Fed unlimited discretion.
d. eliminates the need for a central bank.

Question 2

The quantity theory of money implies that if the money stock were to double, the price level would

a. fall by one half.
b. rise, but only slightly.
c. also double.
d. be unchanged.
e. all of the above.