Skip to main content
Macroeconomics
My Course
Learn
Exam Prep
AI Tutor
Study Guides
Flashcards
Explore
Try the app
My Course
Learn
Exam Prep
AI Tutor
Study Guides
Flashcards
Explore
Try the app
Back
New Classical Model
Download worksheet
Problem 1
Problem 2
Problem 3
Problem 4
Problem 5
Problem 6
Problem 7
Problem 8
Problem 9
New Classical Model
Download worksheet
Practice
Summary
Previous
4 of 9
Next
24. Macroeconomic Schools of Thought / New Classical Model / Problem 4
Problem 4
Why is a steady growth rule in the money supply important for managing inflation expectations in the New Classical Model?
A
It helps firms and workers make better predictions about future inflation.
B
It ensures that inflation remains unpredictable and volatile.
C
It eliminates the need for any monetary policy.
D
It causes inflation expectations to become irrelevant.
AI tutor
0
Show Answer