Multiple Choice
When the financial crisis started in August 2007,inflation was rising and the Fed began an aggressive easing lowering of the federal funds rate,which indicated that
A) the Fed pursued an autonomous monetary policy tightening.
B) the Fed pursued an autonomous monetary policy easing.
C) the Fed had an automatic negative response to inflation based on the Taylor rule.
D) the Fed had an automatic positive response to inflation based on the Taylor rule.
Correct Answer:

Verified
Correct Answer:
Verified
Q1: Everything else held constant,a decrease in autonomous
Q2: An autonomous easing of monetary policy<br>A)causes an
Q4: Everything else held constant,a depreciation of the
Q5: Everything else held constant,a decrease in autonomous
Q6: Everything else held constant,an appreciation of the
Q7: When the financial crisis started in August
Q8: Everything else held constant,an increase in net
Q9: Everything else held constant,an autonomous tightening of
Q10: Everything else held constant,an increase in autonomous
Q11: Based on the Taylor Principle,a central bank's