Scan QR code or get instant email to install app
Question:
A central bank's policy rate is considered expansionary if it is less than:
A
the sum of the long-term growth rate of real economic output and the target inflation rate.
explanation
Monetary policy is said to be expansionary if the central bank's policy rate is less than the neutral interest rate, which is the sum of the long-term trend rate of real economic growth and the central bank's target inflation rate.
Take more free practice tests for other PASSEMALL topics with our cfa sample questions now!
Related Information
Comments