Which Would Be an Example of Running Monetary Policy by Rules

question 108

Multiple Choice

Which would be an example of running monetary policy by rules?

• A) A 5% increase in money supply automatically leads to a 2% increase in real GDP.
• B) An increase in money supply growth automatically leads to an increase in inflation.
• C) The Fed will increase money growth to different levels,depending on the severity of the recession.
• D) A 1% drop in real GDP growth will automatically elicit a 2% increase in money growth.

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Initial Phase

The beginning stage or phases of a process, project, therapy, or any activity, often marked by planning, introduction, and preliminary adjustments.

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A form of sexual orientation characterized by a romantic or sexual attraction to individuals of the same sex.

Sexual Diversity

The range of differences in sexual orientation, identity, and practices among individuals and cultures.