The K-Percent Rule, an Example of a Money Targeting Rule

question 73

Multiple Choice

The k-percent rule, an example of a money targeting rule, relies on a relatively stable

• A) demand for money.
• B) price of gold.
• C) supply of money.
• D) federal funds rate.
• E) real interest rate.

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Definitions:

Progressive

Relating to progressive policies or taxes, which are designed to have a greater impact on those who are able to pay more.

U.S. Tax System

A system governing how taxes are collected from individuals and businesses by the federal, state, and local governments in the United States, covering income, sales, property, and other taxes.

Slightly Regressive

Refers to a tax system or policy that places a relatively higher tax burden on low-income earners compared to high-income earners, but the difference is not pronounced.

Excise Tax

A tax directly levied on specific goods or services, such as tobacco or gasoline, usually to discourage their use or generate revenue.