Friedman Argued That a Central Bank Could Use Monetary Policy

question 32

Multiple Choice

Friedman argued that a central bank could use monetary policy to peg which of the following?

• A)the nominal exchange rate
• B)real GDP growth rate
• C)the unemployment rate
• D)the interest rate

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Definitions:

Bloodstream

The flowing body fluid that circulates through the heart, arteries, veins, and capillaries carrying nutrients and oxygen to cells.

Endocrine System

A network of glands that produce and release hormones into the bloodstream to regulate various body functions including growth, metabolism, and sexual development.

Pons

A part of the brainstem that links the medulla oblongata and the thalamus, playing a key role in sleep and dreaming.

Thyroid Gland

A butterfly-shaped gland located in the neck, responsible for producing hormones that regulate metabolism and energy levels.