The Taylor rule predicted a federal funds rate which was ________ that set when Paul Volcker was chairman of the Fed, and a rate which was ________ that set when Arthur Burns chaired the Fed
A) greater than; equal to
B) greater than; less than
C) less than; equal to
D) less than; greater than
Answer: D
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With a required reserve ratio of 20 percent, an increase in reserves of $10,000 could lead to a maximum increase in checking account deposits in the entire banking system of
A) $2,000. B) $8,000. C) $50,000. D) $100,000.
Historically the return on stocks has been higher than the return on bonds. In part this reflects the higher risk from holding stock
a. True b. False Indicate whether the statement is true or false
Which of the following are considered money?
i. electronic checks ii. paper checks iii. the deposit transferred using an e-check A) ii and iii B) iii only C) i, ii and iii D) i and iii E) i and ii
The measure of the effectiveness lag for a change in monetary policy is the length of time necessary for ________ of the ultimate effect to be felt
A) one-quarter B) one-half C) three-quarters D) all