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:

Weighted-average

A method used in accounting and finance to calculate an average that takes into account the varying degrees of importance of the numbers in the dataset.

Conversion

The process of changing raw materials into finished goods, or the conversion of currencies, data, or resources from one form to another.

Equivalent Units

A principle applied in process costing that transforms units of incomplete production into an equivalent number of units as if they were fully completed.

Weighted-average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, assigning weights to each number before averaging.