The actions the Fed Res takes to regulate the money supply and interest rates to attain macro policy goals
A rule developed by john Taylor that web links the Fed"s target for the federal funds price to economic variables
The commonwealth Reserve System"s 4 monetary policy objectives areA) short government budget plan deficits, low present 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 also economic growth.C) price stability, high employment, financial growth, and stability of financial markets and institutions.D) price stability, short government budget deficits, low existing account deficits, and a low rate of bank failures.

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Monetary plan refers come the plot the federal Reserve takes come manageA) the money supply and income tax prices to go after its economic objectives.B) the money supply and interest prices to seek its economic objectives.C) income tax rates and also interest prices to seek its financial objectives.D) federal government spending and also income tax rates to pursue its economic objectives.
The money demand curve has actually aA) an unfavorable slope because rise in the interest price decreases the quantity of money demanded.B) confident slope because rise in the interest rate boosts the quantity of money demanded.C) an adverse slope because boost in the price level decreases the amount of money demanded.D) optimistic slope because an increase in the price level increases the amount of money demanded.
Using the money demand and also money supply model, one open sector purchase that Treasury securities through the commonwealth Reserve would reason the equilibrium interest price toA) increase.B) decrease.C) not change.D) increase if the economic climate is in a recession.
When the commonwealth Reserve rises the money supply, at the ahead equilibrium interest price households and also firms will now haveA) more money 보다 they desire to hold.B) less money 보다 they want to hold.C) the quantity of money that they desire to hold.D) to offer Treasury bills.
A monetary policy target is a variable thatA) the Fed can affect directly.B) equals one of the Fed"s key policy goals.C) the Fed has no ability to change.D) the Fed cannot influence directly.
If the Fed buys Treasury bills, this will transition theA) money it is provided curve to the right.B) money supply curve come the left.C) money need curve come the right.D) money need curve come the left.
A diminish in real GDP canA) change money demand to the right and also decrease the interest rate.B) change money demand to the right and also increase the interest rate.C) change money demand to the left and also decrease the interest rate.D) transition money demand to the left and increase the interest rate.
An rise in attention ratesA) decreases investment spending top top machinery, equipment, and also factories, but increases intake spending on long lasting goods and net exports.B) decreases invest spending ~ above machinery, equipment, and factories, and also consumption safety on resilient goods, but increases network exports.C) decreases investment spending on machinery, equipment, and factories, usage spending on long lasting goods, and net exports.D) boosts investment spending on machinery, equipment, and factories, consumption spending on durable goods, and net exports.
Monetary policy could be procyclical if the federal ReserveA) is so late recognizing the a recession has begun and conducts expansionary financial policy.B) is quick to identify that a recession has actually begun and conducts expansionary monetary policy.C) is so late recognizing that a recession has begun and does no conduct expansionary financial policy.D) is fast to recognize that a recession has begun and does not conduct expansionary monetary policy.
Under the monetary growth dominion proposed by the monetarists, the money supply would grow each year at a consistent rate equal to the long-run price of expansion ofA) inflation.B) real GDP.C) interest rates.D) employment.

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