The Monetary Policy Rule Suggests That

question 51

Multiple Choice

The monetary policy rule suggests that:

• A) we should follow the rules set by the Fed.
• B) the Fed should follow the rules set by Congress.
• C) the interest rate should grow at a slow and steady pace.
• D) the money supply should grow at a slow and steady pace.

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Definitions:

Flexion

A movement that decreases the angle between two body parts, such as bending a limb at a joint.

Extension

The act of increasing the length, duration, or scope of something beyond the original limit.

Pronation

The inward roll of the foot during normal motion, or the rotational movement of the forearm that turns the palm downward.