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:

Self-Incrimination

The act of implicating oneself in a crime, which is protected against by the Fifth Amendment in the United States Constitution.

Defense of Others

A legal justification for using reasonable force to protect another person from harm or danger.

Deadly Force

The use of force that is likely to result in serious bodily harm or death, often discussed in law enforcement and self-defense contexts.

Unloaded Gun

A firearm that does not contain any ammunition in its chamber or magazine.