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23 March, 11:53

Which of the following is an example of a nominal anchor? A. Inflation rate B. Money supply C. Exchange rate D. Both A and B are correct E. All of the above are correct

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  1. 23 March, 13:14
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    E. All of the above are correct

    Explanation:

    Nominal anchor -

    It is a government policy which is responsible for the stability of the economy.

    For example,

    The example of Nominal anchor are the, inflation rate, exchange rate, money supply.

    As,

    These factors are used to regulate the money supply in the market, and by increasing or decreasing these factors, inflation or deflation can be tackled.
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