________ imposes a conceptual structure and inherent discipline on policy makers, but without eliminating all flexibility
A) Constrained discretion
B) A policy rule
C) A discretionary policy
D) The Taylor rule
A
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The policy directive from the FOMC is carried out by
A) the presidents of the district banks. B) the presidents of commercial banks that are members of the Federal Reserve System. C) the account manager at the Federal Reserve Bank of New York. D) private dealers in the bond market.
At any given time in the U.S., 16 percent of the population lacks health insurance.
A. True B. False C. Uncertain
Which of the following cases is an OCA that is NOT preferred by a home country?
A) The home country faces symmetric shocks with the other country. B) The labor market is well integrated, allowing for migration. C) The home country faces asymmetric shocks with the other country. D) The home economy is well integrated with the other country, carrying out vast amounts of trade.
Suppose that the economy is in long-run equilibrium and the government decided to engage in expected expansionary policy by increasing the money supply. If we assume rational expectations, which of the following statements is correct about the effect of expansionary policy in the long run?
A. The unemployment rate will increase, real Gross Domestic Product (GDP) will increase and the price level will increase. B. The unemployment rate will decrease, real Gross Domestic Product (GDP) will decrease and the price level will decrease. C. The unemployment rate will remain unchanged, real Gross Domestic Product (GDP) will remain unchanged and the price level will increase. D. The unemployment rate will remain unchanged, real Gross Domestic Product (GDP) will remain unchanged and the price level will decrease.