An Example of a Rule Used in Non-Discretionary Monetary Policy

question 46

Multiple Choice

An example of a rule used in non-discretionary monetary policy is ________.

• A) the Taylor rule
• B) the Taylor principle
• C) Keynesian rule
• D) interest rate consistency

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Definitions:

Sales Taxes Payable

A liability account that represents the amount of sales tax collected from customers by a business, which is owed to the government.

Adjusting Entry

A journal entry made in the accounting records at the end of an accounting period to allocate income and expenses to the correct periods.

Unearned Revenue

Money received by a company for a service or product that has yet to be delivered or provided.

Deferred Revenue

Income received by a company for goods or services yet to be delivered or performed, recorded as a liability on the balance sheet until the goods or services are provided.