The plot the Fed Res take away to control the money supply and also interest rates to achieve macro policy goals
A rule arisen by man Taylor that links the Fed\"s target for the commonwealth funds rate to economic variables
The commonwealth Reserve System\"s 4 monetary policy goals areA) short government spending plan deficits, low existing account deficits, high employment, and also a high foreign exchange worth of the dollar.B) a low rate of financial institution failures, high to make reservation ratios, price stability, and economic growth.C) price stability, high employment, economic growth, and stability of jae won markets and institutions.D) price stability, short government budget deficits, low current account deficits, and also a low price of financial institution failures.

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Monetary plan refers to the plot the commonwealth Reserve takes to manageA) the money supply and income tax rates to go after its financial objectives.B) the money supply and also interest rates to pursue its financial objectives.C) revenue tax rates and also interest rates to go after its economic objectives.D) federal government spending and income tax prices to seek its financial objectives.
The money need curve has aA) negative slope because an increase in the interest rate decreases the quantity of money demanded.B) confident slope because boost in the interest rate increases the quantity of money demanded.C) negative slope because boost in the price level decreases the amount of money demanded.D) confident slope because an increase in the price level increases the amount of money demanded.
Using the money demand and also money it is provided model, an open industry purchase of Treasury securities by the federal Reserve would reason the equilibrium interest rate toA) increase.B) decrease.C) no change.D) boost if the economic climate is in a recession.
When the federal Reserve boosts the money supply, in ~ the previous equilibrium interest rate households and firms will now haveA) more money 보다 they desire to hold.B) much less money 보다 they desire to hold.C) the quantity of money the they desire to hold.D) to sell Treasury bills.
A monetary policy target is a variable thatA) the Fed can impact directly.B) equates to one of the Fed\"s key policy goals.C) the Fed has no capability to change.D) the Fed cannot affect directly.
If the Fed buys Treasury bills, this will transition theA) money it is provided curve come the right.B) money supply curve to the left.C) money need curve to the right.D) money need curve to the left.
A decrease in real GDP canA) shift money need to the right and also decrease the attention rate.B) change money demand to the right and increase the attention rate.C) transition money demand to the left and decrease the interest rate.D) change money need to the left and increase the attention rate.
An increase in attention ratesA) decreases invest spending on machinery, equipment, and also factories, however increases intake spending on long lasting goods and also net exports.B) decreases invest spending on machinery, equipment, and also factories, and also consumption security on resilient goods, yet increases net exports.C) decreases investment spending on machinery, equipment, and also factories, consumption spending on resilient goods, and also net exports.D) boosts investment spending on machinery, equipment, and factories, consumption spending on sturdy goods, and also net exports.
Monetary policy can be procyclical if the commonwealth ReserveA) is so late recognizing the a recession has begun and also conducts expansionary financial policy.B) is fast to recognize that a recession has begun and also conducts expansionary financial policy.C) is so late recognizing that a recession has actually begun and also does not conduct expansionary financial policy.D) is rapid to identify that a recession has begun and does no conduct expansionary financial policy.
Under the monetary growth ascendancy proposed by the monetarists, the money supply would certainly grow every year at a consistent rate equal to the long-run price of expansion ofA) inflation.B) actual GDP.C) attention rates.D) employment.

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The federal Reserve does no target both the money supply and also an interest rate becauseA) it would be too confusing to wall surface Street and also would disrupt the gaue won markets.B) it would certainly be too straightforward for wall Street to identify what plan the Fed is following and this would certainly destabilize the economy.C) it would certainly be illegal follow to the commonwealth Reserve Act.D) the Fed cannot accomplish a target because that both the money supply and an interest price at the exact same time.
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