Question

Which of the following is NOT an alternative rule for monetary? policy? A. a natural unemployment...

Which of the following is NOT an alternative rule for monetary? policy?

A.

a natural unemployment rate targeting rule

B.

an inflation rate targeting rule

C.

a money targeting rule

D.

a gold price targeting rule

E.

a monetary base instrument rule

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Answer #1

Ans) a is the correct option.a natural unemployment rate targeting rule.

Fed Can choose a discretionary monetary policy and decide what is best every day, week, and month, but rules are required to keep inflation expectations close to the target inflation rate. A money targeting rule helps in maintaining the growth of the money supply rate. Inflation targeting rule makes a public commitment to achieving an explicit inflation target and to explaining how its policy actions will achieve that target

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