The Friedman Rule Suggests That

question 31

Multiple Choice

The Friedman rule suggests that

• A)the optimal nominal interest rate in an economy should be negative.
• B)the optimal nominal interest rate in an economy should be positive.
• C)the optimal nominal inflation rate in an economy should be positive.
• D)the optimal nominal inflation rate in an economy should be negative.

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Definitions:

Cattle Grazing

The practice of allowing livestock, specifically cattle, to feed on grass in open fields or pastures.

Grasslands

Biomes characterized by large open areas of grasses, with very few trees, that can be found in both temperate and tropical regions of the world.

Desert

A barren area of landscape where little precipitation occurs, resulting in harsh living conditions for most plants and animals.

Jet Stream

A fast flowing, narrow air current found in the atmospheres of some planets, including Earth, typically at the altitude of the boundary between the troposphere and the stratosphere.