In response to an unanticipated easing of monetary policy the Fed funds rate at

In response to an unanticipated easing of monetary

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32) In response to an unanticipated easing of monetary policy, the Fed funds rate ________ at first, then ________ after 6 to 12 months. A) rises; returns most of the way to its original value B) falls; returns most of the way to its original value C) remains roughly unchanged; rises significantly D) remains roughly unchanged; falls significantly 33) Policymakers may be uncertain about the structure of the economy because 34) A liquidity trap occurs when 35) When the Fed increases the quantity of assets it owns, it is said to be engaging in 36) From 2008 to 2014, the Fed engage in ________ rounds of quantitative easing. A) 1. B) 2. C) 3. D) 4. 37) In the financial crisis in 2008, the Federal government created the ________, to purchase financial assets that were thought to be temporarily undervalued, preventing further financial panic.
7 38) Monetarists suggest doing which of the following? 39) The basic Keynesian argument for discretionary monetary policy is that

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