With Nominal GDP Targeting, the Central Bank

question 43

Multiple Choice

With nominal GDP targeting, the central bank

• A)always tries to keep the economy at its full-employment level by keeping actual inflation close to expected inflation
• B)always adjusts money supply even if there is only a temporary shift in aggregate demand
• C)never makes adjustments in money supply even under extreme circumstances
• D)is willing to risk an inflationary bias in its policy to maintain full employment
• E)none of the above

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Definitions:

Lacunae

Small cavities in bone or cartilage tissue housing osteocytes or chondrocytes, cells essential for bone maintenance and cartilage elasticity.

Canaliculi

Microscopic canals in bones that allow for the exchange of nutrients and wastes between blood vessels and osteocytes.

Periosteum

A dense layer of vascular connective tissue enveloping the bones except at the surfaces of the joints, crucial for bone growth and healing.

Trabeculae

Beam-like structures of compact bone, providing structural support and strength within various bones.