All of the following could represent the transmission of monetary policy, except:
A. net exports changing.
B. households altering their spending on durable goods.
C. firms altering their growth plans.
D. income tax rates changing.
Answer: D
You might also like to view...
The economic growth model predicts that ________ across countries will converge over time
A) growth rates B) income levels C) GDP per capita D) foreign direct investment rates
Under exchange-rate targeting, the central bank in the targeting country ________ lose the ability to pursue its own independent monetary policy and any shocks to the anchor country is ________ transmitted to the targeting country
A) does; directly B) does not; directly C) does; not directly D) does not; not directly
Suppose OSHA requires a factory to install specific safety equipment to reduce the number of injuries in the factory. Would the number of accidents necessarily decline? Why or why not?
What will be an ideal response?
Inflation targeting is a framework for carrying out monetary policy whereby
A) the central bank adopts a rigid target for inflation and ignores declines in output. B) the central bank commits to achieving a publicly announced level of inflation. C) the central bank commits to achieving a target level of inflation which is never announced publicly. D) the central bank commits to a monetary growth rule.