Why Has the Short-Term Nominal Interest Rate Been Discredited as an Indicator

question 135

Multiple Choice

Why has the short-term nominal interest rate been discredited as an indicator of monetary policy?

• A)due to the lack of a correlation with decreasing money supply to fight the possibility of disinflation
• B)due to the lack of correlation with volatility of central bank policies
• C)because it has been abandoned by the Riksbank (the central bank of Sweden)
• D)because it moves in tandem with the volatility of central bank policies
• E)due to the lack of publicly available data on short-term nominal interest rates

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