Week9_PracticeQuestions_Key.pdf

B is the main policy making organ of the federal

This preview shows page 3 - 5 out of 5 pages.

B) is the main policy - making organ of the Federal Reserve. C) consists of the Fed chairman and the 12 regional bank presidents. D) meets every week to review the state of the economy. 17) The Federal Reserve's monetary policy goals of maximum employment mean 17) A) that cyclical unemployment should not necessarily be minimized. B) a zero percent natural unemployment rate. C) keeping the unemployment rate close to the natural unemployment rate. D) a zero percent unemployment rate. 3
Image of page 3

Subscribe to view the full document.

18) The key goal of monetary policy is to 18) A) maintain low inflation. B) keep the budget deficit small and/or the budget surplus large. C) reverse the productivity growth slowdown. D) lower taxes. 19) The output gap is the 19) A) percentage increase in the economic growth rate of real GDP. B) percentage deviation of real GDP from potential GDP. C) difference between actual inflation and core inflation. D) difference in graduation levels between high school and college. 20) Which of the following is a potential monetary policy instrument for the Fed? 20) A) income tax rates B) federal funds rate C) government budget deficit D) profit rates 4
Image of page 4
Answer Key Testname: WEEK9_PRACTICEQUESTIONS 1) D 2) B 3) B 4) A 5) B 6) D 7) B 8) A 9) B 10) B 11) B 12) B 13) C 14) D 15) D 16) B 17) C 18) A 19) B 20) B 5
Image of page 5

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern