The Rule That Tells a Central Bank How to Set

question 48

Multiple Choice

The rule that tells a central bank how to set interest rates in response to changes in economic activity is known as the

• A)federal funds rule
• B)interest rate rule
• C)monetary growth rule
• D)Taylor rule
• E)Friedman rule

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Definitions:

Handwriting

The act or skill of writing by hand; also refers to an individual's unique style of writing.

Merchants

Individuals or businesses engaged in the trade of goods, services, or commodities for profit.

ATM Cards

Plastic cards issued by banks that allow customers to access their accounts and conduct transactions at automated teller machines.

Fraudulent Use

The illegal use or misrepresentation of something or someone's identity or resources for personal gain.