Changes in Monetary Aggregates Such as M2 and M2+ Can

question 29

Multiple Choice

Changes in monetary aggregates such as M2 and M2+ can be a poor guide to the stance of monetary policy if

• A)interest rates are changing rapidly.
• B)commercial bank reserves are rising.
• C)interest rates are constant.
• D)money demand is changing in unpredictable ways.
• E)money demand is constant.

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Definitions:

Ladder Diagram

An industry standard for representing relay logic control systems. The diagram resembles a ladder because the vertical supports of the ladder appear as power feed and return buses and the horizontal rungs of the ladder appear as series and/or parallel circuits connected across the power lines.

Ladder Rung

A horizontal row in a ladder logic diagram, representing a condition leading to an outcome in programmable logic controllers (PLCs).