Which statement best summarizes Friedman's views on the role of monetary A) Monetary policy should best be conducted by 1) controlling the price

Which statement best summarizes Friedman's views on the role of monetary

A) Monetary policy should best be conducted by

1) controlling the price level

2) controlling the interest rate

3) controlling exchange rate

4) targeting the inflation rate

5) None of the above

B) Monetary policy can

1) only cushion the effect of aggregate supply shocks to the  economy

2) only cushion the effect of aggregate demand shocks to the economy

3) cushion the effect of both aggregate demand and supply shocks to the economy

4)prevent the occurrence of contractions in output and employment if used sensibly, such as following a fixed monetary growth rate rule

5) stabilize the business cycle over time

C) Monetary policy cannot

1) lower real interest rates in the short run

2) lower nominal interest rates in the long run

3) lower nominal interest rates in the short run

4) avoid engaging in successively larger open market operations

5) all of the above