The Proposal to Keep the Quantity of Money Growing at a Slow

question 106

Multiple Choice

The proposal to keep the quantity of money growing at a slow constant rate is an example of

• A)a money targeting rule.
• B)an inflation rate targeting rule.
• C)a constant federal funds rate rule.
• D)discretionary policy.
• E)a nominal GDP targeting rule.

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Definitions:

Estimator

A guideline or equation that approximates a characteristic of an entire population by analyzing data from a subset of it.

Point Estimate

A single value or statistic that serves as the best guess or estimate of a population parameter based on sample data.

Interval Estimate

An estimate of a population parameter that specifies a range of possible values within which the parameter is expected to lie, usually expressed with a degree of confidence.

Confidence Interval

An interval of values obtained from statistical study of a sample, which is believed to cover the value of a hidden population parameter.