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