The Tying Down of the Price Level to a Nominal

question 13

Multiple Choice

The tying down of the price level to a nominal variable by the central bank is known as committing to ________.

• A)a nominal anchor
• B)rational expectations
• C)a customs union
• D)a positive aggregate demand shock

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Definitions:

Ag

Known as silver, it is a chemical element with the symbol Ag and atomic number 47, often used in jewelry, electronics, and silverware.

Lead

A heavy metal with the symbol Pb and atomic number 82, known for its malleability, resistance to corrosion, and toxicity.

Atomic Symbol

A one- or two-letter abbreviation used to represent an element on the periodic table, based on the Latin name of the element.

Arsenic

A naturally occurring semi-metal element known for its toxic properties, with the symbol As and atomic number 33.