The money-stock target is preferable when uncertainty is the result of unpredictable shifts in which of the following?
A)expectations in future profitability
B)Residential construction investment
C)the money multiplier
D)Both a and b
E)All of the above

Question

Quizplus · Accepted Answer

The money-stock target is more appropriate when uncertainty is caused by unpredictable shifts in expectations of future profitability and residential construction investment. These factors can impact the money supply and therefore affect the economy. The money multiplier is a predictable formula used to estimate the maximum amount of money that can be created by banks through loans, so it is not relevant in this context.

The Money-Stock Target Is Preferable When Uncertainty Is the Result