Which Approach to Monetary Policy Would Be MOST Likely to Increase

question 183

Multiple Choice

Which approach to monetary policy would be MOST likely to increase unemployment problems caused by a negative supply shock to an economy?

• A) monetary rule
• B) inflation targeting
• C) Taylor rule
• D) discretionary countercyclical policy

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Definitions:

Manual Dexterity

The skillful use of one's hands and fingers to manipulate objects with precision and control.

Frontal Lobe

A region of the brain located at the front part, responsible for voluntary movement, expressive language, and managing higher level executive functions.

Task

An assigned piece of work or duty that is to be done within a certain timeframe.

Human Cortex

The outer layer of the brain involved in high-level functions such as consciousness, thought, emotion, reasoning, language, and memory.