Milton Friedman Argued That a Central Bank's Control Over the Money

question 187

Multiple Choice

Milton Friedman argued that a central bank's control over the money supply could be used to peg which of the following?

• A) the level or growth rate of a nominal variable, but not the level or growth rate of a real variable
• B) the level of a nominal or real variable, but not the growth rate of a real or nominal variable
• C) the level or growth rate of a real variable, but not the level or growth rate of a nominal variable
• D) both levels and growth rates of both real and nominal variables

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Definitions:

Macular Degeneration

A medical condition which may result in blurred or no vision in the center of the visual field due to damage to the retina.

Optic Disk

The point in the eye where the optic nerve connects to the retina, also known as the blind spot.

Retina

A thin layer of tissue located on the inside back wall of the eye, containing cells that are sensitive to light and trigger nerve impulses that pass via the optic nerve to the brain, where a visual image is formed.

Lens

A part of the eye that focuses light onto the retina, enabling vision.