If the Central Bank Targets a Monetary Aggregate,it Is Likely

question 39

Multiple Choice

If the central bank targets a monetary aggregate,it is likely to lose control over the interest rate because

• A)of fluctuations in the demand for reserves.
• B)of fluctuations in the consumption function.
• C)bond values will tend to remain stable.
• D)of fluctuations in the business cycle.

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Definitions:

Broca's Area

A region in the frontal lobe of the dominant hemisphere (usually the left) involved in language production.

Speech Production

The process by which thoughts are translated into speech, involving several areas of the brain to produce and articulate words.

Parietal Lobe

A region of the brain involved in processing sensory information regarding the location of parts of the body as well as interpreting visual information and processing language and mathematics.

Cortex

The outer layer of the cerebrum in the brain, involved in complex functions such as thought, perception, and memory.