题目内容

The U.S. Fed “sets” interest rates by

A. announcing a desired discount rate and then attempting to keep the federal funds rate two percentage points above it
B. announcing a desired monetary growth rate designed to keep inflation stable
C. buying or selling Treasury bills
D. announcing its intentions far in advance since transparency allows financial markets to adjust before any action is taken
E. trying to keep bank reserves stable

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When conducting expansionary monetary policy, central banks have to keep in mind that

A. there is a conflict between keeping inflation low and economic activity high
B. unemployment can be lowered in the short run but at the cost of higher prices in the long run
C. spending on durable consumption goods will probably not be significantly affected
D. all of the above
E. only A) and B)

Which of the following is FALSE?

A. in the long run, a central bank can effectively limit inflation
B. in the long run, a central bank can do fairly little to stimulate real GDP
C. in the long run, monetary policy has no effect on nominal GDP
D. unless inflation is very high, stimulating the economy does more to enhance economic welfare than controlling inflation
E. a central bank can lower the inflation rate but only by allowing for a loss in real GDP, at least in the short run

Many economists believe that

A. most short-term stabilization of the economy should be done through monetary policy
B. fiscal policy has no short-run effect on either output or inflation
C. monetary policy affects inflation but not output, even in the short run
D. monetary policy can effectively increase GDP with little or no effect on inflation
E. none of the above is true

Which of the following is NOT a result of monetary policy?

A. aggregate demand is affected, leading to a change in nominal GDP
B. the level of potential GDP will change
C. spending on investment and durable consumption goods is affected
D. the rates of unemployment and inflation are affected in the short run
E. real interest rates will remain unaffected in the long run

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