Money Growth Rate Targeting Can Be Beneficial When

question 11

Multiple Choice

Money growth rate targeting can be beneficial when

• A) there are concerns about high inflation.
• B) there are shocks to money demand.
• C) there is a cash-in-advance constraint.
• D) the price of credit is too high.
• E) there are shocks to money supply.

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Definitions:

Unrealistically Optimistic

Having an excessively positive outlook or expectations about the future or a particular outcome, beyond what is justified by the actual circumstances.

Nondepressed People

Individuals who do not exhibit clinical symptoms of depression, characterized by a more stable mood and emotional state.

Take Credit

Refers to the act of claiming responsibility for an achievement, work, or positive outcome, usually to gain recognition or advantage.

Blame

The act of holding someone responsible for a fault or wrong.