One of the difficulties in implementing monetary policy is the time it takes:
A. to enact monetary policy once the Fed has decided action is needed.
B. to pass new monetary policy once the Fed has decided action is needed.
C. monetary policy to have an effect in the economy once enacted.
D. to get approval from the Congress to implement the policy.
Answer: C
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The price of one bedroom apartments in Cheyenne increased from $55,000 to $65,000 and the quantity of apartment for sale increased from 25 to 30. Using the midpoint method, the price elasticity of supply for apartments in Cheyenne is equal to
A) 0.916. B) 0.75. C) 1.09. D) 2.18. E) 0.08.
Refer to the scenario above. If Frank discounts delayed utilities with a weight of 8/10, then which of the following statements is true?
A) He will consume both hotdogs and ice cream. B) He will consume hotdogs but will avoid consuming ice cream. C) He will consume ice cream but will avoid consuming hotdogs. D) He will avoid consuming both hotdogs and ice cream.
Refer to Figure 15-15. What is the economically efficient output level and what is the price at that level?
A) Q2, P2 B) Q2, P3 C) Q3, P2 D) Q4, P1
An increase in the real interest rate occurs when ________
A) monetary policy responds automatically to an increase in inflation B) expected inflation increases, relative to the nominal interest rate C) an increase in autonomous spending causes an increase in equilibrium output D) all of the above E) none of the above