What Is One Problem with Targeting Monetary Aggregates

question 18

Multiple Choice

What is one problem with targeting monetary aggregates?

• A) The impact of policy changes is hard to determine.
• B) It is pro-cyclical.
• C) It leads to low volatility in interest rates.
• D) All of the above.

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Definitions:

Primary Reinforcer

A stimulus that is naturally rewarding or satisfying, such as food, water, or sleep, which does not require learning to be effective.

Food

Any nutritious substance that people or animals eat or drink, or that plants absorb, in order to maintain life and growth.

Most People

Generally refers to the majority of individuals in a population or group.

Primary Reinforcer

A stimulus like food or water, that is naturally rewarding and satisfies a biological need, used to reinforce behaviors.