题目内容

Total autonomous spending

A. is dependent on the level of output
B. is only determined by the equation for the consumption function
C. is not part of aggregate demand
D. is independent of the level of income
E. increases when disposable income increases

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The rule that tells a central bank how to set interest rates in response to changes in economic activity is known as the

A. federal funds rule
B. interest rate rule
C. monetary growth rule
D. Taylor rule
E. Friedman rule

Which of the following equations most accurately describes the Taylor rule?

A. πt = mt – yt + vt
B. mt = 0.04 + 2(ut – 0.052)
C. mt = πt + 0.5(πt – π*t) + 0.5(Yt –Y*t)
D. it = 2 + πt + 0.5(πt – π*t) + 0.5[100(Yt –Y*t)/Y*t]
E. it = 2 + 0.5[(πt – π*t)/πt] + 0.5[(Yt –Y*t)/Y*t]

If a central bank wants to make sure that its policy actions are successful in manipulating interest rates to stabilize the economy around its full-employment level it should

A. be prepared to make modest and frequent adjustments after receiving feedback on how its actions affect the economy
B. never announce its intentions, because financial markets will always overreact
C. frequently change its policies to keep financial markets guessing
D. react to excess inflation but not to economic booms
E. all of the above

A central bank that follows the Taylor rule

A. will not react to economic disturbances until its full effects are felt
B. assumes there is no tradeoff between unemployment and inflation
C. keeps the growth rate of money supply constant
D. sets interest rates based on current economic conditions
E. will start selling government bonds as soon as interest rates start to rise

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