Those Who Argue Against Interest Rate Targets for Monetary Policy

question 40

Multiple Choice

Those who argue against interest rate targets for monetary policy claim that

• A)the necessary changes in money supply reinforce business cycles
• B)the necessary changes in money supply dampen expansions
• C)increased crowding out reduces private investment even more
• D)inflation would fall
• E)monetary policy is too effective

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Definitions:

First Word

The initial stage in language development, typically occurring in infants and young children, marking the beginning of verbal communication.

Linguistic Relativity Hypothesis

The theory that the structure of a language influences its speakers' worldview or cognition.

Benjamin Lee Whorf

An American linguist and fire prevention engineer known for his ideas on linguistic relativity, the hypothesis that language influences thought.

Noam Chomsky

An American linguist, philosopher, cognitive scientist, historian, social critic, and political activist known for his theory of generative grammar and criticism of behaviorism.