Multiple Choice
In the short run, a central bank can most easily stimulate economic activity by
A) selling government bonds to the public
B) raising interest rates to make investments more profitable
C) lowering the inflation rate though monetary restriction
D) influencing aggregate supply through monetary expansion
E) influencing aggregate demand and accepting a higher price level in the future
Correct Answer:

Verified
Correct Answer:
Verified
Q31: If a central bank engages in inflation
Q32: Which of the following is TRUE about
Q33: According to the Taylor rule, if the
Q34: If it is clear that an economic
Q35: The Taylor rule<br>A)allows for strict inflation targeting
Q37: Assume the central bank announced a 2%
Q38: Assume the current inflation rate is 2.4%
Q39: By lowering short-term interest rates, a central
Q40: Slowing economic activity by increasing interest rates
Q41: The Taylor rule<br>A)advocates lowering interest rates in