Among the Prospective Rules That Set Target Variables Directly,only the Nominal

question 100

Multiple Choice

Among the prospective rules that set target variables directly,only the nominal GDP rule

• A)provides a nominal anchor.
• B)is easy for the Fed to achieve.
• C)allows a neutral response to a supply shock.
• D)is insulated from the effects of unstable velocity.

---

Definitions:

ETFs

Exchange-Traded Funds, investment funds that are traded on stock exchanges, much like stocks, and hold assets such as stocks, commodities, or bonds.

Diversified Portfolio

An investment portfolio that includes a variety of asset types in order to reduce risk.

ETFs

Exchange-Traded Funds, which are investment funds traded on stock exchanges, similar to stocks, and hold assets such as stocks, commodities, or bonds.