With Nominal GDP Targeting, the Central Bank

Multiple Choice

With nominal GDP targeting, the central bank

A) always tries to keep the economy at its full-employment level by keeping actual inflation close to expected inflation
B) always adjusts money supply even if there is only a temporary shift in aggregate demand
C) never makes adjustments in money supply even under extreme circumstances
D) is willing to risk an inflationary bias in its policy to maintain full employment
E) none of the above