Exhibit 24-3 -If the Central Bank Changes Its Monetary Policy Rule from Policy

question 132

Multiple Choice

Exhibit 24-3
-If the central bank changes its monetary policy rule from A to B as shown in Exhibit 24-3,

• A)the monetary policy rule line will shift to the right.
• B)there will be no change in the real rate of interest.
• C)the real rate of interest will decline.
• D)there has been an increase in the target inflation rate.
• E)the monetary policy rule line will shift to the left.

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Definitions:

Methane

A potent greenhouse gas with a significant impact on global warming, more effective than carbon dioxide over a short period.

Butane

A hydrocarbon gas that is a constituent of natural gas and petroleum, used as fuel, in cigarette lighters, and as a propellant in aerosol sprays.

Biogas Digester

A device or structure that breaks down organic matter anaerobically (without oxygen) to produce biogas, a renewable energy source, and digestate, a nutrient-rich fertilizer.

Production Characteristics

Attributes or features that define the process and output of manufacturing or production activities.