question 1 points 2 what role should the fed play according to monetarist theory? the fed should implement…

question 1 points 2 what role should the fed play according to monetarist theory? the fed should implement fiscal policies to control leakages and injections. the fed should change rates weekly to compensate for time lags. the fed should be disbanded, as it only interferes with the free market. the fed should allow the money supply to grow smoothly and consistently. reset 1 0/2 available reset button will be enabled after completing this assessment. questions 0/10 answered

question 1 points 2 what role should the fed play according to monetarist theory? the fed should implement fiscal policies to control leakages and injections. the fed should change rates weekly to compensate for time lags. the fed should be disbanded, as it only interferes with the free market. the fed should allow the money supply to grow smoothly and consistently. reset 1 0/2 available reset button will be enabled after completing this assessment. questions 0/10 answered

Answer

Answer:

The Fed should allow the money supply to grow smoothly and consistently.

Brief Explanations:

Monetarist theory emphasizes stable money - supply growth. It believes that the money supply should increase at a steady rate to match the long - term growth rate of the economy, avoiding large fluctuations. Other options go against monetarist principles. For example, monetarists do not support frequent rate changes or fiscal policy implementation by the Fed, and they do not advocate for the Fed's dissolution.