The Guiding Principle for the Conduct of Monetary Policy That

question 96

Multiple Choice

The guiding principle for the conduct of monetary policy that held that as long as loans were being made for "productive" purposes,then providing reserves to the banking system to make these loans would not be inflationary became known as the

• A)free reserves doctrine.
• B)Benjamin Strong doctrine.
• C)efficient liquidity doctrine.
• D)real bills doctrine.

---

Definitions:

Explanation

An explanation is the process of making something clear or understandable, often by elaborating on how and why something occurs or is the way it is.

Strength

The degree to which the premises of an inductive argument support the conclusion.

Explanandum

The phenomenon or event that is explained by a scientific theory or hypothesis.

False

Refers to something that is not in accordance with truth or fact.