Forward Guidance, in the Basic New Keynesian Model, Is

question 38

Multiple Choice

Forward guidance, in the Basic New Keynesian model, is

• A) a guide in the forward to the central bank statement.
• B) a promise about future fiscal policy.
• C) a promise concerning future inflation.
• D) always a promise of no future inflation.
• E) a commitment guide the public in the future.

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Definitions:

Preferred Stock

Preferred stock is a class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, typically coming with dividend priority.

Entitles

Grants or gives a right or a claim to something, often used in legal and financial contexts.

Investment Account

A financial account held by an investment dealer that a client uses to keep and trade investment securities.

Equity Method

An accounting technique used to record investments in associate companies where the investor has significant influence but not full control.