Monetary policy rules that target nominal variables would target any of the following except the:
A) price level.
B) money supply
C) unemployment rate.
D) level of nominal GDP.

Question

Quizplus · Accepted Answer

Monetary policy rules that target nominal variables would target variables such as the price level, money supply, and level of nominal GDP, but not the unemployment rate. The unemployment rate is a real variable that is affected by various factors in the economy, including monetary policy. However, it is not a nominal variable that can be directly targeted by monetary policy rules.

Monetary Policy Rules That Target Nominal Variables Would Target Any