According to the Modern Central Banking Theory,the Central Bank Changes

question 119

Multiple Choice

According to the modern central banking theory,the central bank changes the nominal interest rate directly by changing its key policy rate,and any value of the nominal interest rate chosen by the central bank implies a specific value for

• A) potential output.
• B) net exports.
• C) government purchases.
• D) the budget deficit.
• E) the money supply.

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