A Problem with a Monetary Rule That Requires the Fed

question 182

Multiple Choice

A problem with a monetary rule that requires the Fed to keep money growth constant is:

• A) the Fed has no control over money growth.
• B) constant money growth implies more volatility in inflation.
• C) constant money growth implies more volatility in real output growth.
• D) the Fed must ignore changes in money velocity.

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Definitions:

Reasonable Doubt

A standard of proof in criminal cases that requires the prosecution to prove the defendant's guilt to such a high degree that a reasonable person would have no doubt as to the defendant’s guilt.

Convicted

Found guilty of a crime by a court of law.

Juror

A member of a jury, usually a group of citizens sworn to render a verdict in a trial based on evidence presented in court.

U.S. Congress

The bicameral legislature of the federal government of the United States, consisting of the House of Representatives and the Senate.