The Benefits of a Credible Nominal Anchor Include ________

question 23

Multiple Choice

The benefits of a credible nominal anchor include ________.

• A) acting like a behaviour rule
• B) preventing the real business cycle from occurring
• C) encouraging activist policy
• D) preventing discretion based actions

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Definitions:

Companies

Organizations engaged in commercial, industrial, or professional activities.

Financial Control

The management of a firm's costs and expenses in order to ensure efficiency, accountability, and profitability.

Forecasts

Forecasts are predictions or estimates of future events or trends, based on analysis of existing data and modeling.

Financial Plan

A comprehensive evaluation of an individual's or organization's current and future financial state by using known variables to predict future cash flows, asset values, and withdrawal plans.