Which of the Following Is a Potential Monetary Policy Instrument

question 96

Multiple Choice

Which of the following is a potential monetary policy instrument for the Reserve Bank?

• A)The real interest rate
• B)Loanable funds
• C)The inflation rate
• D)Firms' profit rates
• E)The cash rate

---

Definitions:

Criterion Validity

The extent to which a measure is related to an outcome or criterion that it is supposed to predict.

Internal Consistency Validity

A measure of the reliability of a test or scale, indicating how well the items on the test measure the same construct or concept.

Content Validity

The extent to which a test measures all aspects of the concept or content it intends to measure.

Multiple-Forms Reliability

A type of reliability test where different forms of a test are administered to the same group of people, measuring the consistency of the results across the different forms.