In regard to monetary policies, nonactivists have various proposals. True or False: Some nonactivists believe in the Taylor rule, which suggests that the annual money-supply growth rate should be based on the growth rates of velocity and Real GDP to ensure that the price level does not fluctuate. O False O True Which of the following statements best explains the difference between the Taylor rule and the two other nonactivist rules (the constant-money growth rate rule and the predetermined-money growth rate rule)? O The Taylor rule does not take into account the stability of prices. O The Taylor rule suggests how much the money supply should grow. O The Taylor rule does not take into account the current state of the economy.

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In regard to monetary policies, nonactivists have various proposals.
True or False: Some nonactivists believe in the Taylor rule, which suggests that the annual money-supply growth rate should be based on the growth
rates of velocity and Real GDP to ensure that the price level does not fluctuate.
O False
O True
Which of the following statements best explains the difference between the Taylor rule and the two other nonactivist rules (the constant-money growth
rate rule and the predetermined-money growth rate rule)?
O The Taylor rule does not take into account the stability of prices.
O The Taylor rule suggests how much the money supply should grow.
O The Taylor rule does not take into account the current state of the economy.
O The Taylor rule is not a derivation of the equation of exchange.
Transcribed Image Text:In regard to monetary policies, nonactivists have various proposals. True or False: Some nonactivists believe in the Taylor rule, which suggests that the annual money-supply growth rate should be based on the growth rates of velocity and Real GDP to ensure that the price level does not fluctuate. O False O True Which of the following statements best explains the difference between the Taylor rule and the two other nonactivist rules (the constant-money growth rate rule and the predetermined-money growth rate rule)? O The Taylor rule does not take into account the stability of prices. O The Taylor rule suggests how much the money supply should grow. O The Taylor rule does not take into account the current state of the economy. O The Taylor rule is not a derivation of the equation of exchange.
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