Swiss Attempts to Target Monetary Aggregates Ended in the 1990s

question 15

Multiple Choice

Swiss attempts to target monetary aggregates ended in the 1990s because ________.

• A)the expectations of Swiss households had evolved from being adaptive to rational
• B)structural changes in the economy had rendered existing practices inflationary
• C)of the resulting increase in interest rates
• D)the ensuing deflation increased the real value of debt held by Swiss manufacturing firms

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Definitions:

Neoclassical Economics

An economic methodology that explores how market distributions of commodities, outputs, and incomes are regulated by supply and demand dynamics.

Behavioral Economics

An area in economics focused on examining the impact of psychological, social, cognitive, and emotional elements on the economic choices made by individuals and institutions.

Natural Disasters

Unpredictable and severe events caused by natural forces such as earthquakes, floods, hurricanes, and wildfires that can result in significant damage and loss of life.

Dictator Game

A game used in experimental economics to study decision-making, where one player (the "dictator") determines how to split an endowment between themselves and another player.