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

Data indicate that the economy's response to monetary policy became noticeably weaker and more stretched out during

The switch to flexible exchange rates in 1973 has made the effect of monetary policy on net exports a ________ important component of the monetary policy multiplier process,and thus has ________ the effectiveness lag.

The believer in policy ________ must be pessimistic about the ability of the private economy to self-stabilize and ________ about the accuracy of economic forecasting.

A policymaker would prefer that the lag in the effect of a policy be

In the past twenty years the economy's responsiveness to monetary policy has become

Suppose that the central bank operates under a money supply growth rule,but with changes in the unemployment rate automatically adjusting the money growth target.This is called a ________ rule.

In which of the following years did oil price movements contribute to holding down inflation?

Which of the following contributed to the negative output ratio experienced in the 1970s?

Economists who support a monetary rule as opposed to an activist monetary policy believe that the effectiveness lag in monetary policy is

In general,activists are ________ about the ability of fiscal and monetary policies to stabilize AD and non-activists are ________.

Non-activists believe that the IS curve is

Successful activist stabilization policy presumes that

David and Christian Romer's estimate of monetary policy's current effectiveness lag,defined as the time necessary for a policy change to have one-half its ultimate effect on GDP,is approximately ________ months.

The Euro,like the European Monetary Union which preceded it,is

Central banks that are relatively free from political interference,and are thus ________ likely to be time inconsistent,generally have a ________ record of achieving low inflation.