In the Simple Monetary Policy Rule, If $\bar { m } = 0$

question 14

True/False

In the simple monetary policy rule, if $\bar { m } = 0$
, the AD curve is horizontal.

---

Definitions:

Cover

A legal remedy in contract law where the aggrieved party purchases goods or services, similar to those agreed upon, from a different source due to the original party's failure to comply.

Incidental Damages

Expenses or losses that occur as a direct result of a breach of contract, distinct from direct damages.

Consequential Damages

A type of damages that arise not directly from a wrongful act but from the results of the act, which may not have been foreseeable.

Market Price

The current price at which an asset or service can be bought or sold in the open market.