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Under a Nominal GDP Targeting Rule, the Central Bank

Question 41

Multiple Choice

Under a nominal GDP targeting rule, the central bank


A) must publish its expected inflation rate.
B) lowers its interest rate when nominal GDP falls below target.
C) loses its ability to influence the inflation rate.
D) changes the interest rate only when real GDP, and hence nominal GDP, is off target.
E) cannot use short-term interest rates to conduct monetary policy.

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