Friedman Argued That a Central Bank Could Use Monetary Policy

question 136

Multiple Choice

Friedman argued that a central bank could use monetary policy to peg which of the following?

• A) the nominal exchange rate
• B) the real GDP growth rate
• C) the unemployment rate
• D) the interest rate

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Definitions:

General Ledger

The primary accounting record of a company or organization in which all transactions are recorded, including assets, liabilities, equity, revenue, and expenses.

Original Entry

The initial recording of a financial transaction in the accounting records or journal.

General Journal

A basic accounting record where all types of transactions are initially recorded before being posted to specific accounts in the general ledger.

General Ledger

A complete record of all financial transactions over the life of a company.