Multiple Choice
After the attack on the World Trade Center in New York on September 11, 2001, the U.S.Fed decided to
A) cautiously assess the situation and wait several days before taking any policy action
B) lower reserve requirements for banks to signal its desire to stimulate the economy
C) increase bank reserves to guarantee liquidity to the financial system
D) close for a few days and therefore could not undertake any open market operations
E) undertake large open market sales to indicate to the world that financial markets still worked
Correct Answer:
Verified
Correct Answer:
Verified
Q8: A central bank that is independent of
Q9: Generally speaking, automatic fiscal stabilizers<br>A)raise the level
Q10: Most economists believe that<br>A)the expectations of firms
Q11: If policy makers were convinced that the
Q12: Stabilization policy is affected by inside lags,
Q14: Formulating an appropriate policy response to an
Q15: The concept of dynamic inconsistency implies that
Q16: Which of these economists proposed that economic
Q17: The outside lag is defined as the
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