The transmission mechanism in monetary policy is the
A. manner in which a buying or selling of bonds ultimately impacts important macroeconomic variables such as real GDP.
B. decision making process.
C. name given to describe the tightening of monetary policy.
D. name given to describe the easing of monetary policy.
Answer: A
You might also like to view...
The opportunity cost of providing a public good to an additional individual is
A) infinite. B) zero. C) impossible to determine. D) high because of the exclusion principle.
The cost of child care in a city declines during two subsequent quarters in a year. Which of the following changes is likely to be observed in the labor market on account of this trend? a. The quantity supplied of labor will decrease
b. The quantity of labor demanded will decrease. c. The labor supply curve will shift to the right. d. The demand for labor curve will shift to the left.
Economists usually assume that labor is _______ input in the _______ run.
A) a fixed; short B) a fixed; long C) a variable; short D) part fixed and part variable; long
If workers and firms lower their inflation expectations
A) actual inflation will fall to match expected inflation. B) unemployment will rise. C) the short-run Phillips curve will be vertical. D) the short-run Phillips curve will shift downward.