ECO 316 Week 4 Chapter 21 The Conduct of Monetary Policy

 This archive file of ECO 316 Week 4 Chapter 21 The Conduct of Monetary Policy comprises:


 21.1 Multiple Choice Questions

 1) By the end of the 1990s and 2000s,

 2) Which of the following is NOT considered to be a goal of monetary policy?

 3) Which of the following is considered to be a goal of monetary policy?

 4) Inflation is an economic problem because it

 5) Rates of inflation in the hundreds or thousands of percent per year are known as

 6) Which of the following countries experienced hyperinflation during the 1920s?

 7) The Employment Act of 1946 codified the federal government's commitment to

 8) Most economists believe that a zero rate of unemployment

 9) John Smith leaves his job in York to go to California in hopes of finding a better one. If John Smith is unemployed while searching for a job in California, economists would consider him to be

 10) When all workers who want jobs have them and the demand for and supply of labor are in equilibrium,

 11) Which of the following statements about the natural rate of unemployment is correct?

 12) The unemployment that is caused by changes in the economy, such as shifts in manufacturing techniques, increased use of computers and electronic machines, and increases in the production of services instead of goods, is called

 13) Sally Jones lost her job at a steel company because of a permanent decline in the demand for steel. Sally Jones is considered by economists to be

 14) High employment spurs economic growth because high employment

 15) When financial markets and institutions are not efficient in matching savers and borrowers,

 16) The Fed was created

 17) During the last two decades,

 18) Federal deposit insurance

 19) Interest rate fluctuations

 20) Increases in interest rates are often blamed on

 21) The Fed's goal of interest rate stability

 22) A rising dollar makes U.S. goods

 23) A falling dollar makes U.S. goods

 24) Which of the following best states the relationship among the Fed's policy goals?

 25) In 1995, then Senator Connie Mack of Florida introduced a bill that

 26) Which chair of the Fed advocated that the Fed engage in inflation targeting?

 27) An important problem facing the Fed is that

 28) The Fed's monetary policy tools

 29) The information lag facing the Fed is

 30) The Fed's inability to instantaneously observe changes in inflation and economic growth result in

 31) The impact lag facing the Fed is

 32) A consequence of the impact lag is that the Fed

 33) The Fed has attempted to solve the problems of being unable to directly control the variables that determine economic performance and the timing lags in observing and reacting to economic fluctuations by

 34) Intermediate targets are

 35) The Fed controls intermediate target variables only indirectly mainly because

 36) Which of the following is an intermediate target?

 37) Which of the following is an operating target?

 38) The Fed uses operating targets as well as intermediate targets because

 39) The quantity of M1 demanded varies inversely with market interest rates because

 40) Using a monetary aggregate for an intermediate target

 41) Using an interest rate for an intermediate target

 42) Which of the following statements concerning the measurability of interest rates is true?

 43) Which of the following statements is true concerning the Fed's ability to measure p

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