Question: The Rules-based Monetary Policy Reads: The Annual Growth Rate In The Money Supply Will Be Equal To The Average Annual Growth Rate In Real GDP Minus The Growth Rate In Velocity. This policy is based on the Search Console portion of AdSense program policies. Monetary Policy. I conclude with a discussion of a simple versus complex policy rules, the impact of uncertainty on policy-making, and how central bankers use formal modelling in â¦ This policy applies to your channel as a whole. In other words, if you have many videos that violate our guidelines, monetization may be removed from your entire channel. a. Get help with your Monetary policy homework. True b. Fals e ANSWER: False POINTS: 1 DIFFICULTY: Moderate NATIONAL STANDARDS: â¦ It raises questions related to monetary policy, central banking operations, and payment systemsâas well as financial stability and legal foundations and regulation. C) Keynesians would be more likely to advocate contractionary monetary policy to correct an inflationary gap than expansionary monetary policy to correct a recessionary gap. If a countryâs rules-based monetary policy sets the annual money supply growth rate equal to the average annual growth rate of Real GDP, and velocity is a constant, then the price level a. is also constant. Access the answers to hundreds of Monetary policy questions that are explained in a way that's easy for you to understand. Nonactivists argue against the use of discretionary monetary policy and rules-based monetary policy. Monetary policy is the process by which the monetary authority of a country controls the supply of money, often targeting a rate of interest for the purpose of â¦ NATIONAL STANDARDS: United States - BUSPROG: Analytic LOCAL STANDARDS: United States - OH - Default City - DISC: Monetary and fiscal policy KEYWORDS: Bloom's: Comprehension 5. If The Average Growth Rate In Real GDP This Year Is 3 Percent And The Growth Rate In Velocity Is 2 Percent, Then The Money Supply Will Increase By _____ Percent This Year. The rules-based monetary policy reads: The annual growth rate in the money supply will be equal to the average annual growth rate in Real GDP minus the growth rate in velocity.If the average growth rate in Real GDP this year is 3 percent and the growth rate in velocity is 2 percent,then the money supply will increase by _____ percent this year. The Taylor rule is one kind of targeting monetary policy used by central banks.The Taylor rule was proposed by the American economist John B. Taylor, economic adviser in the presidential administrations of Gerald Ford and George H. W. Bush, in 1992 as a central bank technique to stabilize economic activity by setting an interest rate.. CHAPTER 23 The Monetary Policy and Aggregate Demand Curves 3 To see why monetary policymakers follow â¦ Below are some of the most pressing questions and answers on By Tobias Adrian and Tommaso Mancini-Griffoli Central Bank Digital Currencies (CBDC) is a complex and multidisciplinary topic requiring active analysis and debate. By pursuing a strategy that ensures that inflation does not distort decisions concerning investment, production and savings, monetary policy is best able to contribute to â¦ b. rises in years when Real GDP rises. rule for how monetary policy should react to conditions in the economy, while the Taylor rule does. B) Fine-tuning consists of the usually frequent use of monetary policy to counteract even small undesirable movements in economy activity. Weâve put it in a context thatâs more relevant for YouTube creators. 101. c. rises in years when Real GDP growth is less than average. monetary policy is the most effective instrument in influencing medium-term inflation outcomes. M23_MISH5701_05_SE_C23.indd 2 10/15/12 7:32 PM. d. rises in years when Real GDP growth is greater than average.