An Example of a Rule Used in Non-Discretionary Monetary Policy

question 46

Multiple Choice

An example of a rule used in non-discretionary monetary policy is ________.

• A) the Taylor rule
• B) the Taylor principle
• C) Keynesian rule
• D) interest rate consistency

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Definitions:

Rescission

The act of revoking, canceling, or repealing a contract, returning all parties to their positions prior to the agreement.

Mutual Agreement

An understanding or contract reached between two or more parties, often formalized by a document, indicating a concurrence of wills or intentions.

Accord And Satisfaction

A contractual agreement where a dispute is settled by the parties involved agreeing to give and accept something of value in resolution.

Condition

A stipulation or prerequisite in a contract or agreement that must be met for the agreement to be fully enforceable.