What do you think is meant by the statement that "successful monetary policy requires competent people and the right institutional environment"?
What will be an ideal response?
The people part of this argument is obvious. If monetary policy is going to be successful you need to have very bright people who are astute in economic policy matters. But perhaps more important is to have an institutional environment where these competent people can have the greatest impact. During the last 10 to 15 years most central banks have gained greater independence from political pressure and have increased their transparency and accountability with the result being better performing economies.
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Which of the following is TRUE regarding a trend?
I. A cross section graph shows trends. II. A time-series graph shows trends. III. A scatter plot shows trends over time. A) I B) II C) I and II D) II and III
Among the benefits of privatization of state owned enterprises is
(a) increased employment. (b) improved efficiency. (c) reduced pollution. (d) all of the above. (e) none of the above.
If banks have $10 million in legal reserves, $70 million in check able deposits, and a reserve requirement of 10 percent, they can still expand the money supply by
a. $10 million. b. $20 million. c. $30 million. d. $50 million.
The percentage of passengers waiting 20 minutes or more in TSA lines this summer fell to ____% from 1.3% last year
Fill in the blank(s) with the appropriate word(s).