A monetary policy rule may contain which of the following?
A)price shocks
B)short-term output
C)the unemployment rate
D)the inflation rate
E)all of the above

Question

Quizplus · Accepted Answer

A monetary policy rule typically includes a target inflation rate or range, which is used by central banks to guide their interest rate decisions. Price shocks, short-term output, and the unemployment rate may affect inflation, but they are not typically included as explicit targets in a monetary policy rule.

A Monetary Policy Rule May Contain Which of the Following