The primary tool the Fed uses to control the money supply today is:
a. the discount rate
b. the required reserve ratio.
c. the discount window.
d. chartering.
e. open market operations.
e
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"With autonomous changes in the policy interest rate, the Federal Reserve cannot determine the long run equilibrium level of the real interest rate or potential output and will only be able to determine inflation"
This statement is consistent with ________. A) the notion that shifts in the MP curve may lead to shifts in the AD and AS curves but the LRAS remains unchanged B) the notion of long-run independence between nominal and real variables C) the notion of monetary neutrality D) all of the above E) none of the above
The PPP index:
A. describes the overall inequality present in one country compared to another. B. describes the overall differences in poverty levels between countries. C. describes the overall difference in prices between countries. D. None of these is true.
When the housing bubble popped, the effect of the negative demand side shock and the negative supply side shock were the same on:
A. output, causing it to definitely decrease. B. prices, causing them to definitely rise. C. output, causing it to definitely increase. D. prices, causing them to definitely fall.
Classicals:
A. generally favor laissez-faire policies. B. believe that all unemployment is cyclical unemployment. C. believe that frictional unemployment does not exist. D. generally favor activist government policies.