Question 1

There are how many members of the Board of Governors in the Federal Reserve system?

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 2

Explain the macroeconomic effects of changes in monetary policy in: (1)the short run; and (2)the medium run.

Accepted Answer

The answers can vary (not to mention be

Question 3

Which of the following statements about Fed management of the money supply is correct?

Accepted Answer

A) Over the past thirty years, the Fed has always stayed within its pre-announced target rates for growth in M2. 
B) The most common tool used by the Fed is a change in the required ratio of reserves to deposits. 
C) The rate at which the Fed lends money to banks is called the "Federal Funds rate." 
D) The Fed must report each week to Congress on the conduct of monetary policy. 
E)  none of the above 
A) Over the past thirty years, the Fed has always stayed within its pre-announced target rates for growth in M2. 
B) The most common tool used by the Fed is a change in the required ratio of reserves to deposits. 
C) The rate at which the Fed lends money to banks is called the "Federal Funds rate." 
D) The Fed must report each week to Congress on the conduct of monetary policy. 
E)  none of the above

Question 4

M2 is also referred to as which of the following?

Accepted Answer

A) currency 
B) narrow money 
C) near money 
D) high powered money 
E)  none of the above 
A) currency 
B) narrow money 
C) near money 
D) high powered money 
E)  none of the above

Question 5

Which of the following is part of M1 and part of M2?

Accepted Answer

A) currency 
B) travelers checks 
C) checkable deposits 
D) all of the above 
E)  none of the above 
A) currency 
B) travelers checks 
C) checkable deposits 
D) all of the above 
E)  none of the above

Question 6

For this question,assume that the Fed sets monetary policy according to the Taylor rule.Suppose current U.S.macroeconomic conditions are represented by the following: π  un.Given this information,we would expect that the Fed will

Accepted Answer

A) implement a monetary contraction. 
B) implement a monetary expansion. 
C) maintain its current stance of monetary policy. 
D) more information is need to answer this question. 
A) implement a monetary contraction. 
B) implement a monetary expansion. 
C) maintain its current stance of monetary policy. 
D) more information is need to answer this question.

Question 7

Chairmen of the Federal Reserve Board

Accepted Answer

A) serve 14-year terms as chairmen. 
B) serve 4-year renewable terms as chairmen. 
C) also serve as members of the administration. 
D) serve 4-year non-renewable terms as chairmen. 
E)  none of the above 
A) serve 14-year terms as chairmen. 
B) serve 4-year renewable terms as chairmen. 
C) also serve as members of the administration. 
D) serve 4-year non-renewable terms as chairmen. 
E)  none of the above

Question 8

An asset is considered liquid if it

Accepted Answer

A) can be used as a store of value. 
B) has a guaranteed rate of return. 
C) is indexed to the rate of inflation. 
D) acts as a medium of exchange. 
E)  none of the above 
A) can be used as a store of value. 
B) has a guaranteed rate of return. 
C) is indexed to the rate of inflation. 
D) acts as a medium of exchange. 
E)  none of the above

Question 9

The existence of inflation does which of the following?

Accepted Answer

A) facilitates the downward adjustment of real wages 
B) reduces shoe-leather costs 
C) reduces tax distortions 
D) reduces the costs associated with money illusion 
A) facilitates the downward adjustment of real wages 
B) reduces shoe-leather costs 
C) reduces tax distortions 
D) reduces the costs associated with money illusion

Question 10

For this question,assume that the Fed sets monetary policy according to the Taylor rule.Suppose current U.S.macroeconomic conditions are represented by the following: π < π?* and u = un.Given this information,we would expect that the Fed will

Accepted Answer

A) implement a monetary contraction. 
B) implement a monetary expansion. 
C) maintain its current stance of monetary policy. 
D) more information is need to answer this question. 
A) implement a monetary contraction. 
B) implement a monetary expansion. 
C) maintain its current stance of monetary policy. 
D) more information is need to answer this question.

Question 11

Which of the following would cause a reduction in M1?

Accepted Answer

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

There are how many members of the Board of Governors in the Federal Reserve system?

Explain the macroeconomic effects of changes in monetary policy in: (1)the short run; and (2)the medium run.

Which of the following statements about Fed management of the money supply is correct?

M2 is also referred to as which of the following?

Which of the following is part of M1 and part of M2?

For this question,assume that the Fed sets monetary policy according to the Taylor rule.Suppose current U.S.macroeconomic conditions are represented by the following: π < π?* and u > un.Given this information,we would expect that the Fed will

Chairmen of the Federal Reserve Board

An asset is considered liquid if it

The existence of inflation does which of the following?

For this question,assume that the Fed sets monetary policy according to the Taylor rule.Suppose current U.S.macroeconomic conditions are represented by the following: π < π?* and u = un.Given this information,we would expect that the Fed will

Which of the following would cause a reduction in M1?

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

Exam 23: Monetary Policy: a Summing up

There are how many members of the Board of Governors in the Federal Reserve system?

Explain the macroeconomic effects of changes in monetary policy in: (1)the short run; and (2)the medium run.

Which of the following statements about Fed management of the money supply is correct?

M2 is also referred to as which of the following?

Which of the following is part of M1 and part of M2?

For this question,assume that the Fed sets monetary policy according to the Taylor rule.Suppose current U.S.macroeconomic conditions are represented by the following: π < π?* and u > un.Given this information,we would expect that the Fed will

Chairmen of the Federal Reserve Board

An asset is considered liquid if it

The existence of inflation does which of the following?

For this question,assume that the Fed sets monetary policy according to the Taylor rule.Suppose current U.S.macroeconomic conditions are represented by the following: π < π?* and u = un.Given this information,we would expect that the Fed will

Which of the following would cause a reduction in M1?

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