QuestionAugust 6, 2025

What do most central banks target? They target __ A. a short-term nominal interest rate and the quantity of money B. the monetary base C. the quantity of money D. a short-term nominal interest rate

What do most central banks target? They target __ A. a short-term nominal interest rate and the quantity of money B. the monetary base C. the quantity of money D. a short-term nominal interest rate
What do most central banks target?
They target __
A. a short-term nominal interest rate and the quantity of money
B. the monetary base
C. the quantity of money
D. a short-term nominal interest rate

Solution
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Answer

D. a short-term nominal interest rate Explanation 1. Identify central bank targets Most central banks primarily target a short-term nominal interest rate to influence economic activity.

Explanation

1. Identify central bank targets<br /> Most central banks primarily target a short-term nominal interest rate to influence economic activity.
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