Nominal GDP Targeting Is a Policy Approach in Which the Federal

Multiple Choice

Nominal GDP targeting is a policy approach in which the Federal Reserve:

A) uses its policy tools to try to keep nominal GDP at a selected, fixed level.
B) uses the current level of nominal GDP as its target for GDP to maintain stability.
C) sets the level of nominal GDP and then sees what that does to the money supply.
D) uses its policy tools to try to achieve a selected rate of growth in nominal GDP.