Which Would Be an Example of Running Monetary Policy by Rules

question 108

Multiple Choice

Which would be an example of running monetary policy by rules?

• A) A 5% increase in money supply automatically leads to a 2% increase in real GDP.
• B) An increase in money supply growth automatically leads to an increase in inflation.
• C) The Fed will increase money growth to different levels,depending on the severity of the recession.
• D) A 1% drop in real GDP growth will automatically elicit a 2% increase in money growth.

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Definitions:

Five-Factor Model

A theory that describes personality using five broad dimensions: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Repression

A defense mechanism where undesirable thoughts, memories, or desires are unconsciously pushed out of conscious awareness.

Distinctiveness

The quality or characteristic of being easily distinguishable from others due to unique features or attributes.

Highly Incongruent

Refers to situations or stimuli that are vastly inconsistent or contrasting with expected norms or patterns.