Question 1

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 C

Question 2

Which of the following has the tightest relation with inflation?

Accepted Answer

A) H,the monetary base 
B) M1 
C) M2 
D) M3 
A) H,the monetary base 
B) M1 
C) M2 
D) M3 C

Question 3

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 C

Question 4

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 5

Bracket creep would be more 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 6

A change in the reserve requirement changes

Accepted Answer

A) the monetary base. 
B) the money multiplier. 
C) the discount rate. 
D) all of the above 
E) none of the above 
A) the monetary base. 
B) the money multiplier. 
C) the discount rate. 
D) all of the above 
E) none of the above

Question 7

Reducing the maximum LTV is likely to ______demand and thus ______the housing price increase.

Accepted Answer

A) decrease,slow down 
B) increase,slow down 
C) decrease,speed up 
D) increase,speed up 
A) decrease,slow down 
B) increase,slow down 
C) decrease,speed up 
D) increase,speed up

Question 8

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 9

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 10

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 11

There are how many members of the Federal Open Market Committee?

Accepted Answer

A) 15 
B) 14 
C) 12 
D) 7 
E) 5 
A) 15 
B) 14 
C) 12 
D) 7 
E) 5

Question 12

In the medium run,a reduction in inflation causes

Accepted Answer

A) a reduction in the opportunity cost of holding money. 
B) an increase in the opportunity cost of holding money. 
C) no change in the opportunity cost of holding money. 
D) individuals to switch from holding money to bonds and reduce their real money balances. 
A) a reduction in the opportunity cost of holding money. 
B) an increase in the opportunity cost of holding money. 
C) no change in the opportunity cost of holding money. 
D) individuals to switch from holding money to bonds and reduce their real money balances.

Question 13

First,write out the equation that represents the Taylor rule.Second,discuss how the Taylor rule is used to explain the implementation of monetary policy.

Accepted Answer

The Taylor rule is represented as the fo

Question 14

Broad money is represented by

Accepted Answer

A) H. 
B) M1. 
C) M2. 
D) higher powered money. 
E) the monetary base. 
A) H. 
B) M1. 
C) M2. 
D) higher powered money. 
E) the monetary base.

Question 15

Which of the following is NOT a tool of the Fed?

Accepted Answer

A) the discount rate 
B) reserve requirements 
C) open market operations 
D) the proportion of money held as currency 
A) the discount rate 
B) reserve requirements 
C) open market operations 
D) the proportion of money held as currency

Question 16

Monetary policy affects which of the following variables in the long run?

Accepted Answer

A) the level of output 
B) the rate of unemployment 
C) the rate of inflation 
D) the real interest rate 
E) all of the above 
A) the level of output 
B) the rate of unemployment 
C) the rate of inflation 
D) the real interest rate 
E) all of the above

Question 17

Suppose individuals decide to reduce their holdings of money market funds.Further assume that these decisions put funds into checkable deposits.Given this information,we know that

Accepted Answer

A) the demand for M1 would increase and the demand for M2 would decrease. 
B) the demand for M1 would decrease and the demand for M2 would decrease. 
C) the demand for M1 would increase and the demand for M2 would increase. 
D) the demand for M1 would decrease and the demand for M2 would increase. 
E) none of the above 
A) the demand for M1 would increase and the demand for M2 would decrease. 
B) the demand for M1 would decrease and the demand for M2 would decrease. 
C) the demand for M1 would increase and the demand for M2 would increase. 
D) the demand for M1 would decrease and the demand for M2 would increase. 
E) none of the above

Question 18

The existence of inflation does which of the following?

Accepted Answer

A) reduces tax distortions 
B) reduces shoe-leather costs 
C) allows for the possibility of negative real interest rates 
D) reduces the costs associated with money illusion 
A) reduces tax distortions 
B) reduces shoe-leather costs 
C) allows for the possibility of negative real interest rates 
D) reduces the costs associated with money illusion

Question 19

What are some of the questions about the macro prudential tools?

Accepted Answer

1)In many cases we do not know how well

Question 20

The Humphrey-Hawkins Act requires the Fed to promote

Accepted Answer

A) stable prices. 
B) maximum employment. 
C) moderate long-term interest rates. 
D) all of the above 
E) none of the above 
A) stable prices. 
B) maximum employment. 
C) moderate long-term interest rates. 
D) all of the above 
E) none of the above

Exam 24: Monetary Policy: a Summing up

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

Which of the following has the tightest relation with inflation?

Which of the following would cause a reduction in M1?

M1 consists of

Bracket creep would be more likely occur in which of the following?

A change in the reserve requirement changes

Reducing the maximum LTV is likely to ______demand and thus ______the housing price increase.

Chairmen of the Federal Reserve Board

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

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

There are how many members of the Federal Open Market Committee?

In the medium run,a reduction in inflation causes

First,write out the equation that represents the Taylor rule.Second,discuss how the Taylor rule is used to explain the implementation of monetary policy.

Broad money is represented by

Which of the following is NOT a tool of the Fed?

Monetary policy affects which of the following variables in the long run?

Suppose individuals decide to reduce their holdings of money market funds.Further assume that these decisions put funds into checkable deposits.Given this information,we know that

The existence of inflation does which of the following?

What are some of the questions about the macro prudential tools?

The Humphrey-Hawkins Act requires the Fed to promote

A Tour of the World

A Tour of the Book

The Goods Market

Financial Markets

Goods and Financial Marketsthe Is-Lm Model

The Labor Market

Putting All Markets Togetherthe As-Ad Model

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

The Crisis

The Facts of Growth

Saving,capital Accumulation,and Output

Technological Progress and Growth

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

Expectations: the Basic Tools

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

an Introduction to National Income and Product Accounts

an Introduction to Econometrics

Filters

Reducing the maximum LTV is likely to demand and thus the housing price increase.