Multiple Choice
Adjusting monetary growth based on previous changes in nominal GDP
A) is relatively easy for the Fed to undertake because the implementation lag is quitelong.
B) could be destabilizing because of the uncertainty of the length of impact lags.
C) is an effective policy because it allows the Fed to influence future macroeconomic performance.
D) raises the price level proportionately.
Correct Answer:
Verified
Correct Answer:
Verified
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