The Guiding Principle for the Conduct of Monetary Policy That

question 96

Multiple Choice

The guiding principle for the conduct of monetary policy that held that as long as loans were being made for "productive" purposes,then providing reserves to the banking system to make these loans would not be inflationary became known as the

• A)free reserves doctrine.
• B)Benjamin Strong doctrine.
• C)efficient liquidity doctrine.
• D)real bills doctrine.

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Definitions:

Scientific Methods

Systematic procedures for gathering knowledge and testing hypotheses in order to develop, refine, and validate scientific knowledge.

Critical Thinking

Aimed at conducting a thorough review and appraisal of a subject to make a decision.

Psychodynamic Perspective

A theoretical approach in psychology that emphasizes unconscious processes and childhood experiences in shaping behavior and personalities.

Biopsychosocial Approach

The biopsychosocial approach is a broad view that attributes disease outcome to the intricate, variable interaction of biological factors (genetic, biochemical, etc.), psychological factors (mood, personality, behavior, etc.), and social factors (cultural, familial, socioeconomic, medical, etc.).