Which of the Following Is INCORRECT

question 54

Multiple Choice

Which of the following is INCORRECT?

• A) A monetary rule may not be appropriate in the case of a major economic shock.
• B) Monetary rules are based on the assumption that the economy will return to full employment on its own in the long run.
• C) If one believes that frequent changes in monetary policy can have destabilizing effects on the economy,then a monetary rule may be appropriate.
• D) Monetary rules assume that the Federal Reserve has perfect insight into the effects of monetary policy on the economy.

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Definitions:

Standard Deviation

A measure of the amount of variation or dispersion in a set of values, showing how much each value differs from the mean.

Normal Distribution

A bell-shaped curve which describes the spread of a characteristic throughout a population, where most occurrences take place around the central peak and probabilities for values taper off equally towards both tails.

Symmetry

Symmetry in statistics refers to a situation where the two halves of a distribution mirror each other across a central point.

Modality

Refers to the manner or mode in which something exists or is experienced or expressed.