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Interest rates can be measured more accurately and quickly than reserve aggregates, hence an interest rate is preferred to the reserve aggregates as a policy
"Interest rates can be measured more accurately and quickly than reserve aggregates, hence an interest rate is preferred to the reserve aggregates as a policy instrument." Do you agree or disagree? A. Disagree. The measurement of real interest rates requires estimates of expected inflation, and it is not true that real interest rates are necessarily measured more accurately and quickly than the money supply. O B. Disagree. Nominal interest rates are measured more accurately and quickly than the money supply; therefore, interest-rate targets are not necessarily better than money-supply targets. O C. Agree. Policymakers care only about nominal interest rates when making policy decisions and do not use the money supply or its aggregates in making decisions. O D. Agree. Although nominal interest rates are measured more accurately and quickly than the money supply, the interest-rate variable that is of more concern to policymakers is the real interest rate
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