A Monetary Policy Rule May Contain Which of the Following

question 84

Multiple Choice

A monetary policy rule may contain which of the following?

• A)short-term output
• B)the inflation rate
• C)the unemployment rate
• D)all of the above
• E)none of the above

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Definitions:

Internal Rate

A term often not complete on its own, likely referring to "Internal Rate of Return (IRR)," which is the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Present Value Tables

A set of tables that provide the factor needed to calculate the present value of a single payment or series of payments to be received in the future.

Investment

The allocation of resources, usually money, in assets or projects with the expectation of generating income or profit.

Compound Interest

Interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods.