Question 1

The accelerationist principle stipulates that a government determined to use monetary policy to keep

Accepted Answer

A)  employment below the natural rate for any lengthy period will have to continually increase the rate of inflation to do so. 
B)  unemployment below the natural rate for any lengthy period will have to continually increase the rate of inflation to do so. 
C)  unemployment below the natural rate for a short period will have to continually increase the rate of inflation to do so. 
D)  unemployment below the natural rate for any short period will have to continually decrease the rate of inflation to do so. 
E)  unemployment above the natural rate for any lengthy period will have to continually increase the rate of inflation to do so.

Question 2

Contemporary economic theory asserts that no Keynesian stable trade-off between inflation and unemployment exists.

Accepted Answer

A) True 
 B)False

Question 3

Are independent central banks compatible with democratic principles?

Accepted Answer

The answer of Are independent central banks compatible with democratic...

Question 4

According to Oatley's data,the country with the greatest economic growth with the least central bank independence was

Accepted Answer

A)  Japan. 
B)  Norway. 
C)  Belgium. 
D)  Italy. 
E)  Germany.

Question 5

A time-consistency problem arises when

Accepted Answer

A)  the best course of action at a particular moment in time differs from the best course of action in general. 
B)  the best course of action at the beginning is usually the best course of action in general. 
C)  the best course of action at the end is usually the best course of action in general. 
D)  there is no way of knowing what the best course of action is in general. 
E)  the best course of action at a particular moment in time is the same as the best course of action in general.

Exam 13: A State-Centered Approach to Monetary and Exchange-Rate Policies

The accelerationist principle stipulates that a government determined to use monetary policy to keep

Contemporary economic theory asserts that no Keynesian stable trade-off between inflation and unemployment exists.

Are independent central banks compatible with democratic principles?

According to Oatley's data,the country with the greatest economic growth with the least central bank independence was

A time-consistency problem arises when