题目内容

A central bank that wants to stabilize the economy in the short run should try to

A. establish a clear inflation target and stick to it no matter what
B. affect aggregate supply through open market operations
C. affect aggregate demand through open market operations
D. maintain a stable growth rate of money supply
E. concentrate only on long-run goals

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In the short run, a central bank can most easily stimulate economic activity by

A. selling government bonds to the public
B. raising interest rates to make investments more profitable
C. lowering the inflation rate though monetary restriction
D. influencing aggregate supply through monetary expansion
E. influencing aggregate demand and accepting a higher price level in the future

The U.S. Federal Reserve’s Open Market Committee (the FOMC)

A. meets regularly to decide on its monetary policy actions
B. formally makes decision by voting on monetary policy changes
C. sometimes reveals its intentions in advance to increase transparency
D. does not follow a clearly established policy rule
E. all of the above

If a central bank wants to avoid high inflation in an economic boom it can

A. try to lower investment spending though open market purchases
B. raise interest rates in an effort to affect aggregate supply
C. lower bank reserves by buying government bonds
D. decrease the level of potential GDP by permanently restricting money supply growth
E. none of the above

Which of the following is NOT a way in which a central bank can conduct its monetary policy?

A. by establishing target interest rates and then undertaking open market operations to maintain them
B. by buying and selling government bonds
C. by making small policy changes and readjusting policies as needed
D. by changing the rate of capital accumulation to influence aggregate supply
E. by changing interest rates to influence spending on durable goods and investment

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