When It Is Difficult to Know the Size and Timing

question 40

True/False

When it is difficult to know the size and timing of monetary policy effects,the central bank should use policy discretion to deal with shocks.

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Definitions:

Cycles Per Second

A unit of frequency equivalent to one oscillation or vibration per second, known as Hertz (Hz).

Doppler Shift

A change in frequency or wavelength of a wave in relation to an observer moving relative to the source of the wave.

Decibels

A unit of measurement used to express the intensity of sound, based on a logarithmic scale.

Loudness

A perceptual measure of the strength or intensity of a sound, often correlated with physical amplitude of the sound waves.