The one main difficulty with a nominal GDP target rule for monetary policy is that it
A)is a difficult target to hit.
B)provides no nominal anchor.
C)requires a painful extinguishing response to an adverse supply shock.
D)performs badly when there is unstable velocity.

Question

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The Answer of The one main difficulty with a nominal GDP target rule for monetary policy is that it
A)is a difficult target to hit.
B)provides no nominal anchor.
C)requires a painful extinguishing response to an adverse supply shock.
D)performs badly when there is unstable velocity.

The One Main Difficulty with a Nominal GDP Target Rule