Of the Following Targets or Nominal Anchors, Which Is NOT

question 48

Multiple Choice

Of the following targets or nominal anchors, which is NOT useful for controlling domestic inflation?

• A) nominal exchange rates
• B) money supply measures
• C) nominal interest rates
• D) real money demand measures

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Definitions:

Retributive Reciprocity

A principle often found in social relations where actions, good or bad, are returned with actions of a similar kind, akin to the concept of "an eye for an eye."

Reciprocity

The exchange of goods and services, of approximately equal value, between two parties.

Social Obligations

Social obligations refer to the duties or responsibilities imposed by society upon its members, which could involve participating in community service, adhering to societal norms, or fulfilling familial roles.

Making Profits

The process of generating financial gain from business activities after subtracting all expenses, taxes, and costs.