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.

---

Definitions:

Strange Situation

A procedure developed in psychology to observe attachment relationships between a caregiver and child, through a series of introductions, separations, and reunions.

Smiling

A facial expression formed by flexing the muscles near both ends of the mouth, often expressing happiness or pleasure.

Oral Stage

The first phase in Freud's psychosexual development theory, occurring in the first year of life, where the mouth is the primary focus of pleasure and exploration.

Pacifier

A rubber, plastic, or silicone nipple given to an infant to suck upon, often used for comfort and to soothe the baby.