Answer the following questions true (T) or false (F)
1. The Fed can simultaneously reduce the inflation rate and stimulate growth through lowering interest rates.
2. A monetary policy target is a variable that the Fed can affect directly, which then affects one or more of the Fed's policy goals.
3. Ceteris paribus, an increase in the money supply will lower short-term interest rates.
1. FALSE
2. TRUE
3. TRUE
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According to the new growth theory, real GDP per person grows because
A) the retirement age increases. B) the labor force participation rate increases. C) people make choices in pursuit of profits. D) the population increases. E) the government subsidizes firms' research and development.
Which of the following represents ownership of a firm?
A) commodities B) stocks C) bonds D) loans E) short-term securities
Competing-interest legislation involves
a. concentrated costs and widespread benefits b. both widespread costs and widespread benefits c. both concentrated costs and concentrated benefits d. widespread costs and concentrated benefits e. concentrated costs and either widespread or concentrated benefits
Oliver just brought home a new kitten. We could expect Oliver's demand for:
A. dog toys, a substitute good, to decrease. B. cat toys, a complementary good, to decrease. C. cat toys, a complementary good, to increase. D. dog toys, a substitute good, to increase.