What did the actions of the Federal Reserve during the 1990's demonstrate about monetary policy and rules?
During this time the Fed achieved and maintained a low rate of inflation even though it was not tied by a rule. This shows that low inflation does not require that the Fed be committed to a policy rule.
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The Coase Theorem assumes
a. transactions are costless c. both (a) and (b) b. damages are accessible and measureable d. none of the above
Economists reason that the optimal decision is to continue any activity up to the point where the
A) marginal benefit equals the marginal cost. B) marginal cost is zero. C) marginal benefit is greater than the marginal cost. D) marginal benefit is zero.
Unlike banks, ________ have been allowed to branch statewide since 1980
A) federally-chartered S&Ls B) state-chartered S&Ls C) financially troubled S&Ls D) technically insolvent S&Ls
As part of the "exchange rate effect of monetary policy," a higher money supply causes __________ of the domestic currency and thus __________ net exports
A) appreciation; rising B) appreciation; falling C) depreciation; rising D) depreciation; falling