Q1. The McCallum rule: A) sets the money supply growth rate equal to the target inflation rate plus real GDP growth plus velocity. B) suggests that money supply growth is triggered by changes in aggregate demand. C) adjusts rather slowly to changes in economic growth rates.
Q2. Which alternative money policy strategy is negatively affected by fluctuations in the demand for money? A) Inflation targeting. B) Exchange rate targeting. C) Money supply growth rate targeting.
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