Why are there significant time lags in monetary policy?
a. Financial markets are inefficient and information takes several months to impact them.
b. Changes in monetary policy only affect future projects such as factories, not current ones.
c. Interest rates takes several months to change after a change in money supply.
d. Interest rates are fixed and it takes several months to change laws to have the targets amended.
e. Because of the Fed's relative inability to convince Congress about the necessity of a particular monetary policy.
B
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With a given level of GDP, a decrease in the size of population would cause:
A) GDP per capita to decrease. B) life expectancy to decrease. C) GDP per capita to increase. D) life expectancy to increase.
Because of ongoing changes in farm technology over the last two centuries, the average farm size in the U.S
a. increased, and the number of farms decreased b. increased, and the number of farms increased c. stayed virtually the same, but the number of farms decreased d. decreased, and the number of farms increased e. decreased, and the number of farms decreased
For any given year, the CPI is the price of the basket of goods and services in the
a. given year divided by the price of the basket in the base year, then multiplied by 100. b. given year divided by the price of the basket in the previous year, then multiplied by 100. c. base year divided by the price of the basket in the given year, then multiplied by 100. d. previous year divided by the price of the basket in the given year, then multiplied by 100.
In 2012, the imaginary nation of Kanmiw had a population of 8,044 and real GDP of 36,198,000 . In 2013 it had a population of 7,800 and real GDP of 35,880,000 . What was the growth rate of real GDP per person in Kanmiw between 2012 and 2013?
a. -2.2 percent b. -0.7 percent c. 2.2 percent d. 4.5 percent