Multiple Choice
The U.S.Fed can most effectively achieve an established federal funds rate target by
A) leaking information about its future intentions to financial markets
B) maintaining a stable monetary growth rate
C) undertaking open market operations to influence bank reserves
D) adjusting monetary growth to maintain a stable inflation rate
E) selling Treasury bills whenever short-term interest rates increase
Correct Answer:
Verified
Correct Answer:
Verified
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
Q42: The Taylor rule<br>A)is an activist monetary policy
Q43: Which of the following is NOT a
Q45: The Taylor rule implies that a central
Q46: Short-run monetary policy changes should<br>A)ignore any fiscal
Q47: If a central bank follows an activist
Q48: The rule that tells a central bank
Q49: Assume a central bank announced a zero