Money Supply Targeting

question 52

Multiple Choice

Money supply targeting

• A) performs poorly.
• B) is used by most monetary authorities today.
• C) will result in a high rate of inflation.
• D) is very successful in maintaining price stability.
• E) is superior to nominal interest rate targeting in maintaining price stability.

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Definitions:

Invalidate

To make something legally void or ineffective, often by showing it was improperly formed or does not comply with necessary legal requirements.

Contract

A legally enforceable agreement between two or more parties, typically involving the exchange of goods, services, money, or promises.

Court

A governmental body authorized to adjudicate legal disputes, interpret laws, and administer justice.

Basis

The underlying support or foundation for an idea, argument, or process.