Of the Following, Which Is NOT a Monetary Policy Rule

question 72

Multiple Choice

Of the following, which is NOT a monetary policy rule the Fed could follow?

• A) a gold price targeting rule
• B) an unemployment rate targeting rule
• C) an inflation targeting rule
• D) a k-percent rule
• E) a money targeting rule

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Definitions:

Economic Profit

Economic profit is the difference between a firm's total revenue and its total costs, including both explicit and implicit costs, representing the excess over the firm's opportunity costs.

Implicit Costs

The firm’s opportunity costs of using resources owned or provided by the owner.

Explicit Costs

Dollar costs incurred by business firms, such as wages, rent, and interest.

Implicit Costs

The opportunity costs that are not directly incurred but represent the loss of alternative benefits when choosing one option over another.