Suppose that the central bank operates under a money supply growth rule,but with changes in the unemployment rate automatically adjusting the money growth target.This is called a ________ rule.
A)CGRR
B)discretionary
C)feedback
D)nominally-anchored

Question

Quizplus · Accepted Answer

A feedback rule adjusts the monetary policy target based on changes in economic variables such as the unemployment rate. This type of rule allows for some discretion in policy decisions, but also incorporates automatic adjustments to maintain economic stability.

Suppose That the Central Bank Operates Under a Money Supply