how-would-a-steady-growth-rule-in-the-money-supply-help-align-the-new-classical-

Question

How would a steady growth rule in the money supply help align the New Classical Model with the Monetarist Model?

Accepted Answer

It provides a predictable framework for inflation expectations.

Answer

It causes inflation to become unpredictable.

Answer

It eliminates the need for monetary policy.

Answer

It reduces the importance of money supply in economic models.