In Order to Achieve the Target for the Nominal Interest

question 15

Multiple Choice

In order to achieve the target for the nominal interest rate established by the monetary policy rule, the central banks adjusts:

• A)the inflation rate.
• B)the natural rate of interest.
• C)the money supply.
• D)the inflation target.

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Definitions:

Pricing Scheme

A strategy or method used by businesses to set prices for their products or services, often designed to optimize profits, market share, or customer satisfaction.

Second-degree Price Discrimination

A pricing strategy where prices vary based on the quantity consumed or purchased, rather than customer characteristics, allowing sellers to capture more consumer surplus.

Consumer Surplus

The difference between the highest price a consumer is willing to pay for a good or service and the actual price they pay.

Sherman Antitrust Act

A landmark federal statute in the United States passed in 1890 aimed at promoting economic competition by prohibiting monopolies, cartels, and other forms of anticompetitive practices.