To pursue its monetary policy goals, the Fed could use
I. a nominal GDP targeting rule.
Ii. a money targeting rule.
Iii. an inflation targeting rule.
A)i only
B)i and ii
C)ii only
D)iii only
E)i, ii, and iii

Question

Quizplus · Accepted Answer

The Fed can use any of these rules—nominal GDP targeting, money targeting, and inflation targeting—to achieve its monetary policy goals. Each rule provides a different framework for guiding monetary policy decisions.

To Pursue Its Monetary Policy Goals, the Fed Could Use