B the Fed increases the money supply causing the expected inflation rate to

B the fed increases the money supply causing the

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B) the Fed increases the money supply, causing the expected inflation rate to rise more than the real interest rate declines, so that the nominal interest rate increases.C) there are runs on banks that are solvent but illiquid.D) the demand for loans increases in a country on the gold standard, so that the monetary supply is not able to increase and interest rates rise dramatically.Answer: ADiff: 1Topic: Section: 14.4Question Status: New 12) When the Fed signals how long it expects interest rates to remain at a low level, it is said to be engaging in 24
13) When the Fed alters the types of assets it owns, it is engaging in14) When the Fed sells short-term bonds and buys long-term bonds, it is engaging in15) When the Fed increases the quantity of assets it owns, it is said to be engaging in A) credit easing.B) forward guidance.C) quantitative easing.D) a maturity extension program.Answer: CDiff: 1Topic: Section: 14.4Question Status: New 16) From 2007 to 2012, the amount of assets owned by the Fed approximately25
17) Describe, in general terms, the lags in the effects of monetary policy on interest rates, output,and prices. Be sure to note how long it takes each variable to respond to policy changes.1) Which of the following statements would Milton Friedman disagree with?2) Which of the following statements would Milton Friedman agree with concerning the conduct of monetary policy?

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