Exam 14: The Goals, tools, and Rules of Monetary Policy

What is the only policy instrument the Fed really can control directly and precisely?

The Fed has the least degree of discretion and the least to do under a policy rule setting

"Monetarism" advocates a monetary policy

Quarterly data for the years 1988-93 for the nominal federal funds interest rate and the output ratio show that the Fed

To reduce economic volatility the Fed should push the economy toward a

The non-activists believe that

A monetary policy which is likely to bring about a "soft landing" requires that interest rates be ________ while inflation is ________ and unemployment is ________ the natural level.

Expenditure changes may be potentially inequitable,as are tax changes,because

Which of these policy targets does NOT provide a "nominal anchor?"

Which of the following is NOT an argument of non-activists?

In Taylor Rule equation,high value of parameter a indicates that

Activists believe that postwar instability is primarily the result of

According to the New Classical macroeconomic school,

Which of the following groups of economic forecasters have been able to forecast "turning points" when the economy turned up or down?

The increase of the real money supply by 10% by the Federal Reserve when the unemployment rate rises by 1% is an example of

Compared to the previous three decades,after 1982 recessions have been ________ and expansions have been ________ .

A study of estimated multipliers in the major econometric models shows that

"Inflation Targeting Rule" is a special case of a

The Canadian experience with inflation and unemployment in the early 1990s has this to say about policy rules:

During which of the following decades has the output ratio been staying closest to zero?