Nominal GDP Targeting Is a Policy Approach in Which the Federal

question 50

Multiple Choice

Nominal GDP targeting is a policy approach in which the Federal Reserve:

• A) uses its policy tools to try to keep nominal GDP at a selected, fixed level.
• B) uses the current level of nominal GDP as its target for GDP to maintain stability.
• C) sets the level of nominal GDP and then sees what that does to the money supply.
• D) uses its policy tools to try to achieve a selected rate of growth in nominal GDP.

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