One of the Factors That Contributed to the Success German

question 37

Multiple Choice

One of the factors that contributed to the success German policymakers had using a monetary targeting type policy starting in the mid-1970s and continuing through the next two decades was that

• A)they used a rigid target for the money growth rate.
• B)they implemented policy so their inflation rate goal was met in the short run.
• C)the money target was flexible to allow the Bundesbank to concentrate on other goals as needed.
• D)they rarely communicated the intentions of policy to the public in order to keep the public from panicking.

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