Question 1

LTV ratio appears to be positively related to

Accepted Answer

A) bond price. 
B) stock price. 
C) housing price. 
D) none of the above 
E)  all of the above 
A) bond price. 
B) stock price. 
C) housing price. 
D) none of the above 
E)  all of the above

Question 2

Until the 1990s,how was monetary policy typically conducted in advanced countries?

Accepted Answer

1)The central bank chose a target rate f

Question 3

When the Fed wants to signal the public about the direction of monetary policy,it will likely use

Accepted Answer

A) a change in the discount rate. 
B) open market operations. 
C) a change in the reserve requirement. 
D) a public announcement about a change in the targeted federal funds rate. 
E)  all of the above 
A) a change in the discount rate. 
B) open market operations. 
C) a change in the reserve requirement. 
D) a public announcement about a change in the targeted federal funds rate. 
E)  all of the above

Question 4

The discount rate represents the interest rate on

Accepted Answer

A) overnight loans between banks. 
B) three-month U.S. securities. 
C) municipal bonds. 
D) one-year discount bonds. 
E)  none of the above 
A) overnight loans between banks. 
B) three-month U.S. securities. 
C) municipal bonds. 
D) one-year discount bonds. 
E)  none of the above

Question 5

Which of the following is considered a benefit of inflation?

Accepted Answer

A) the option of a negative real interest rate 
B) money illusion 
C) seignorage 
D) all of the above 
E)  none of the above 
A) the option of a negative real interest rate 
B) money illusion 
C) seignorage 
D) all of the above 
E)  none of the above

Question 6

What are the factors that will determine the optimal inflation rate?

Accepted Answer

In short,the factors that will determine

Question 7

M1 consists of

Accepted Answer

A) currency only. 
B) currency plus travelers checks only. 
C) currency plus checkable deposits only. 
D) checkable deposits only. 
E)  none of the above 
A) currency only. 
B) currency plus travelers checks only. 
C) currency plus checkable deposits only. 
D) checkable deposits only. 
E)  none of the above

Question 8

Explain what role money illusion plays in determining the Fed's ability to affect output in the short run.

Accepted Answer

Money illusion refers to a situation whe

Question 9

The maximum number of individuals a U.S.president can appoint to the Board of governors is

Accepted Answer

A) 15. 
B) 12. 
C) 7. 
D) 4 . 
E)  none of the above 
A) 15. 
B) 12. 
C) 7. 
D) 4 . 
E)  none of the above

Question 10

Explain what is meant by shoe-leather costs.

Accepted Answer

In the medium run,an increase in inflati

Question 11

Since the 1980s,"NOW" accounts have been included in

Accepted Answer

A) M1, but not M2. 
B) M2, but not M1. 
C) both M1 and M2. 
D) the monetary base and M1, but not M2. 
E)  neither M1 nor M2. 
A) M1, but not M2. 
B) M2, but not M1. 
C) both M1 and M2. 
D) the monetary base and M1, but not M2. 
E)  neither M1 nor M2.

Question 12

Which of the following is not correct about quantitative easing?

Accepted Answer

A) It is one of the conventional monetary policy tools. 
B) It refers to the Fed's asset purchasing program. 
C) It helped reduce term premium on long-term government bonds. 
D) As a result, the balance sheet of the Fed is much larger than it was before the crisis. 
A) It is one of the conventional monetary policy tools. 
B) It refers to the Fed's asset purchasing program. 
C) It helped reduce term premium on long-term government bonds. 
D) As a result, the balance sheet of the Fed is much larger than it was before the crisis.

Question 13

Which of the following would cause an increase in M1?

Accepted Answer

A) a reduction in the required ratio of reserves to deposits 
B) an increase in the discount rate 
C) an open market operation where the Fed buys bonds 
D) all of the above 
E)  none of the above 
A) a reduction in the required ratio of reserves to deposits 
B) an increase in the discount rate 
C) an open market operation where the Fed buys bonds 
D) all of the above 
E)  none of the above

Question 14

From 2000 to 2007,which country had the maximum LTV allowed?

Accepted Answer

A) United Kingdom 
B) Australia 
C) Netherlands 
D) Canada 
E)  United States 
A) United Kingdom 
B) Australia 
C) Netherlands 
D) Canada 
E)  United States

Question 15

Discuss the current debate on the optimal inflation target.

Accepted Answer

At this stage,most central banks in rich

Question 16

Suppose an economy experiences an increase in inflation.Explain the possible macroeconomic benefits of this increase in inflation.

Accepted Answer

Answers should include discuss

Question 17

Bracket creep would less likely occur in which of the following?

Accepted Answer

A) a progressive income tax system 
B) a regressive income tax system 
C) a flat income tax system 
D) none of the above 
A) a progressive income tax system 
B) a regressive income tax system 
C) a flat income tax system 
D) none of the above

Question 18

Monetary policy has medium-run effects on which of the following?

Accepted Answer

A) the level of output but not its composition 
B) both the level and composition of output 
C) only the price level 
D) the level of output AND the price level 
E)  none of the above 
A) the level of output but not its composition 
B) both the level and composition of output 
C) only the price level 
D) the level of output AND the price level 
E)  none of the above

Question 19

Which of the following is part of "M2" but not "M1"?

Accepted Answer

A) money market mutual fund shares 
B) saving deposits 
C) time deposits (under $100,000) 
D) all of the above 
E)  none of the above 
A) money market mutual fund shares 
B) saving deposits 
C) time deposits (under $100,000) 
D) all of the above 
E)  none of the above

Question 20

The existence of inflation does which of the following?

Accepted Answer

A) reduces tax distortions 
B) allows governments to benefit from seignorage 
C) reduces shoe-leather costs 
D) reduces the costs associated with money illusion 
A) reduces tax distortions 
B) allows governments to benefit from seignorage 
C) reduces shoe-leather costs 
D) reduces the costs associated with money illusion

Exam 23: Monetary Policy: a Summing up

LTV ratio appears to be positively related to

Until the 1990s,how was monetary policy typically conducted in advanced countries?

When the Fed wants to signal the public about the direction of monetary policy,it will likely use

The discount rate represents the interest rate on

Which of the following is considered a benefit of inflation?

What are the factors that will determine the optimal inflation rate?

M1 consists of

Explain what role money illusion plays in determining the Fed's ability to affect output in the short run.

The maximum number of individuals a U.S.president can appoint to the Board of governors is

Explain what is meant by shoe-leather costs.

Since the 1980s,"NOW" accounts have been included in

Which of the following is not correct about quantitative easing?

Which of the following would cause an increase in M1?

From 2000 to 2007,which country had the maximum LTV allowed?

Discuss the current debate on the optimal inflation target.

Suppose an economy experiences an increase in inflation.Explain the possible macroeconomic benefits of this increase in inflation.

Bracket creep would less likely occur in which of the following?

Monetary policy has medium-run effects on which of the following?

Which of the following is part of "M2" but not "M1"?

The existence of inflation does which of the following?

A Tour of the World

A Tour of the Book

The Goods Market

Financial Markets

Goods and Financial Marketsthe Is-Lm Model

Financial Markets Ii: the Extended Is-Lm Model

The Labor Market

The Phillips Curve, the Natural Rate of Unemployment, and Inflation

From the Short to the Medium Run: the Is-Lm-Pc Model

The Facts of Growth

Saving, capital Accumulation, and Output

Technological Progress and Growth

Technological Progress: the Short, the Medium, and the Long Run

Financial Markets and Expectations

Expectations, consumption, and Investment

Expectations, output, and Policy

Openness in Goods and Financial Markets

The Goods Market in an Open Economy

Output, the Interest Rate, and the Exchange Rate

Exchange Rate Regimes

Should Policy Makers Be Restrained

Fiscal Policy: a Summing up

Epilogue: the Story of Macroeconomics

Appendix

Filters