Week 2 quiz BUS 320 - 1 out of 1 points In the long run the Federal Reserve can affect Selected Answer inflation Correct Answer inflation Question 2 1

Week 2 quiz BUS 320 - 1 out of 1 points In the long run the...

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1 out of 1 points In the long run, the Federal Reserve can affect Selected Answer: inflation. Correct Answer: inflation. Question 2 1 out of 1 points The simple equation that can be used to predict how the Federal Reserve will change interest rates is known as Selected Answer: the Taylor rule. Correct Answer: the Taylor rule. Question 3 1 out of 1 points The expected rate of change of prices is known as the Selected Answer: expected inflation rate. Correct Answer: expected inflation rate. Question 4 1 out of 1 points Economists who try to predict recessions find that recessions are Selected Answer: difficult to predict. Correct Answer: difficult to predict.
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Question 5 1 out of 1 points The policymaking institution that determines the money supply, sets the rules for how checks are cleared and how banks obtain new currency, and determines what activities banks may or may not engage in and whether banks are operating in a prudent fashion is the Selected Answer: Federal Reserve System. Correct Answer: Federal Reserve System. Question 6 1 out of 1 points The Federal Reserve creates money by Selected Answer: changing a number in its computer system. Correct Answer: changing a number in its computer system. Question 7 1 out of 1 points When the overall level of business activity declines persistently, there is said to be Selected Answer: a recession. Correct Answer: a recession. Question 8 1 out of 1 points Economic policy affects Selected Answer: the entire financial system.
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