Under a Nominal GDP Targeting Rule, the Central Bank

question 30

Multiple Choice

Under a nominal GDP targeting rule, the central bank

• A) must publish its expected inflation rate.
• B) lowers its interest rate when nominal GDP falls below target.
• C) loses its ability to influence the inflation rate.
• D) changes the interest rate only when real GDP, and hence nominal GDP, is off target.
• E) cannot use short-term interest rates to conduct monetary policy.

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Definitions:

Cash Account

An account that records all transactions involving cash inflows and outflows.

QBO Check Register

A feature in QuickBooks Online that allows users to view and manage all transactions from a checking account, similar to a traditional checkbook register but in a digital format.

Credit Register

A ledger or record keeping system that tracks credit transactions, including purchases and payments on account.

Bank Errors

Mistakes made by a bank in the recording of transactions, which can include discrepancies in account balances and unauthorized transactions.