With a monetary growth rule as proposed by the monetarists, during a recession the rate of growth of the money supply would decrease.increase.not change.decrease or increase depending on economic conditions.Using the money demand and money supply model, if the economy goes into a recession and the Fed does not pursue policy, then interest rates will rise.interest rates will fall.interest rates will rise and unemployment will rise.interest rates will rise and inflation will rise.The interest rate that banks charge other banks for overnight loans is the prime rate.discount rate.federal funds rate.Treasury bill rate.
With a monetary growth rule as proposed by the monetarists, during a recession the rate of growth of the money supply would decrease.increase.not change.decrease or increase depending on…
