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please provide detail on how to get to answer 56. But monetary policy cannot be tuned to real economic variables like growth or employment, not
please provide detail on how to get to answer
56. "But monetary policy cannot be tuned to real economic variables like growth or employment, not only because policy takes effect with long and uncertain lags, but because any commitment to real growth targets simply invites workers and business to increase wages and prices at will, in the knowledge that the central bank will ratify their demands via the money supply." Ratifying demands via the money supply means that money growth will be: a) fixed at a low, steady rate b) whatever is needed to prevent inflation c) whatever is needed to maintain full employment d) whatever is needed to maintain a desired interest rateStep by Step Solution
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