Questions and answers by

Praise Jesus

Questions (135)

Which of the following is considered an advantage of monetary policy compared to fiscal policy?Multiple Choice It is blunter and
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An expansionary monetary policy may be less effective than a restrictive monetary policy becauseMultiple Choice the Federal
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One of the strengths of monetary policy relative to fiscal policy is that monetary policyMultiple Choice can be implemented more
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Prior to the 2007–2009 financial crisis, the most frequently employed monetary policy tool wasMultiple Choice raising the
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Which of the following statements about quantitative easing is most accurate?Multiple Choice Quantitative easing refers to the
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Why doesn't the Fed want to drive nominal interest rates below zero in response to a financial crisis and recession?Multiple
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Which of the following best describes the cause-effect chain of expansionary monetary policy?Multiple Choice lower interest
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An increase in the money supply willMultiple Choice lower interest rates and lower the equilibrium GDP. lower interest rates and
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Assume the economy is operating at less than full employment. An expansionary monetary policy will cause interest rates to
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Which of the following is able to most effectively impact money market lending?Multiple Choice discount rate bank policy rate
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The interest rate that banks charge one another on overnight loans of reserves held at the Federal Reserve is called theMultiple
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If the Fed wants to discourage bank lending, it willMultiple Choice increase the interest paid on reserve balances held at the
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The discount rate is the interestMultiple Choice rate at which the central banks lend to the U.S. Treasury. rate at which the
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Which of the following will happen when the Federal Reserve lowers the interest rate paid on reserve balances?Multiple Choice
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The Federal Reserve System changes the money supply byMultiple Choice controlling the production of coins at the U.S. Mint.
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The sale of government securities by the Fed will causeMultiple Choice bank reserves to increase. the money supply to decrease.
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Which of the following is not a tool of monetary policy?Multiple Choice open-market operations changes in banking laws changes
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The three main tools of monetary policy areMultiple Choice interest on reserve balances, open-market operations, and changing
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In the United States, monetary policy is the responsibility of theMultiple Choice U.S. Treasury. Department of Commerce. Federal
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If the inflation rate is 7 percent and the unemployment rate is close to 3.5 percent, the Federal Reserve would chooseMultiple
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Select all that applyWhich of the following lags does monetary policy face? (More than one answer may be correct.) Multiple
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The levels of output, employment, income, and prices all result from the interaction of Blank______.Multiple choice question.
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Select all that applyWhich of the following were causes of increased inflation during the second year of the COVID-19 pandemic?
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Fill in the Blank QuestionFill in the blank question. policy may be highly effective in slowing expansions and controlling
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In most cases, how long is the expected operational lag when the Fed makes changes in interest rates?Multiple choice question.
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Fill in the Blank QuestionFill in the blank question. Monetary policy faces a recognition lag and an operational lag, but avoids
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The interaction of aggregate supply and aggregate demand result in the levels of which of the following?Multiple select
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Multiple Choice QuestionWhich portion of total spending is influenced the most by interest rate changes? Multiple choice
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Multiple Choice QuestionInvestment spending is one of the determinants of what? Multiple choice question. Aggregate demand Total
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Fill in the Blank QuestionFill in the blank question. There is a(n) relationship between the interest rate and the amount of
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Multiple Choice QuestionThe Taylor rule is based on the fact that policymakers usually Blank______. Multiple choice question.
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Fill in the Blank QuestionFill in the blank question. The impact of changing interest rates on spending is great because of the
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Multiple Choice QuestionWhich interest rate is the most critical for investment decisions? Multiple choice question. False Real
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Multiple Choice QuestionIf the red dot is southwest or northeast of the center of the Fed's bullseye chart, then Blank______ is
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Fill in the Blank QuestionFill in the blank question. Changes in the interest rate mainly affect the component of total
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2. 7 views