Multiple Choice
Higher short term interest rates can be used to prevent inflation because they
A) discourage saving
B) increase the debt-service expense for the government
C) cause the country's currency to depreciate on the world market
D) enhance consumer confidence
E) discourage investment
Correct Answer:
Verified
Correct Answer:
Verified
Q2: Open market operations refer to<br>A) all economic
Q3: In practice,effective deflation<br>A) occurs when the inflation
Q4: Inflation targeting most commonly consists of<br>A) a
Q5: If a central bank targets the exchange
Q6: Central banks commonly aim to keep the
Q7: The next questions refer to the following.<br>Suppose
Q8: If the central bank targets the money
Q9: The credit channel refers to<br>A) changes in
Q10: According to the Quantity Theory of Money,if
Q11: The LM curve slopes upward because<br>A) as