The advantage of an explicit inflation target is that it: a/helps anchor inflation expectations b/completely eradicates...
The advantage of an explicit inflation target is that it:
a/helps anchor inflation expectations
b/completely eradicates discretionary monetary policy
c/allows banks to set interest rates
d/raises the marginal product of capital
e/stabilizes money supply
Homework Answers
Answer : The answer is option a.
Explicit inflation target help anchor inflation expectations. This help to determine the price of goods, wages and investment. This is one of benefits of explicit inflation target. Hence except option a other options are not correct. Therefore, option a is the correct answer.
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The advantage of an explicit inflation target is that it:
a/helps anchor inflation expectations
b/completely eradicates...
Question 1 The advantage of an explicit inflation target is that it: A. Group of answer...
Question 1 The advantage of an explicit inflation target is that it: A. Group of answer choices B. allows banks to set interest rates C. raises the marginal product of capital D. stabilizes money supply E. helps anchor inflation expectations F. completely eradicates discretionary monetary policy Flag this Question Question 2 The slope of the aggregate demand curve is determined A. by the sensitivity of short-run output to both inflation and the real interest rate. B. only by the sensitivity...
52. Studying alternative theories of how people form expectations is particularly relevant to monetary policy because...
52. Studying alternative theories of how people form expectations is particularly relevant to monetary policy because A. if people fully expect inflation to occur, the effects of monetary policy are more widespread. monetary policy can only have real effects on the economy if people fully expect inflation. c. unexpected inflation cause prices to be flexible. d. the effects of expected inflation are completely different from the effects of unexpected inflation e expected inflation causes prices to become sticky. 53. Monetary...
Which of the following is a monetary policy intended to rein in inflation? a. Reduce interest...
Which of the following is a monetary policy intended to rein in inflation? a. Reduce interest rates to increase investment spending b. Increase the money supply to shift the aggregate demand curve rightward c. Reduce the interest paid on banks' reserves d. Decrease the money supply to shift the aggregate demand curve leftward
2A) Aggregate supply shifts to the left when: A. input prices rise. B. producer subsidies are higher. C. inflation expectations are lower D. there is a decrease m burdensome regulations. B) Which of...
2A) Aggregate supply shifts to the left when: A. input prices rise. B. producer subsidies are higher. C. inflation expectations are lower D. there is a decrease m burdensome regulations. B) Which of these fiscal policy measures will NOT increase aggregate supply? A. B. C. D. increased infrastructurespending reduced taxes on businesses investment tax credits increase in business regulation Aggregate Ouput C) ff there is a decrease in inputprices, the short-runageregate supply cuve will shift from SRAS to and theprice...
32. The rational expectations hypotheses implies that discretionary macroeconomic policy is: a. relatively effective in both...
32. The rational expectations hypotheses implies that discretionary macroeconomic policy is: a. relatively effective in both the short run and long run b. relatively effective in the short run but ineffective in the long run c. relatively ineffective in both the short run and long run d. effective in the long run since decision makers will continually make predictable, systematic errors 33. The modern view of the Phillips curve suggests that a. when inflation is less than anticipated, unemployment will...
1. Is the Phillips curve a myth? Intertemporal tradeoff between inflation and unemployment After the World...
1. Is the Phillips curve a myth? Intertemporal tradeoff between inflation and unemployment After the World War II, empirical economists noticed that, in many advanced economies, as unemployment fell, inflation tended to rise, and vice versa. The inverse relationship between unemployment and Inflation, was depicted as the Phillips curve, after William Phillips of the London School of Economics. In the 1950s and 1960s, the Phillips curve convinced many policy makers that they could use the relationship to pick acceptable levels...
32. The credibility of the central bank: a. promotes long-run growth. b. is irrelevant for controlling inflation. c...
32. The credibility of the central bank: a. promotes long-run growth. b. is irrelevant for controlling inflation. c. is crucial for controlling inflation and stabilizing output d. promotes sensible fiscal policy. e. implies low interest rates. 33. You are the head of the central bank and you want to maintain 2 percent long-run inflation, using the quantity theory of money. If the real GDP growth is 4 percent and velocity is constant, you suggest a: a. 6 percent interest rate...
I need Summary of this Paper i dont need long summary i need What methodology they used , what is the purpose of this...
I need Summary of this Paper i dont need long summary i need
What methodology they used , what is the purpose of this paper and
some conclusions and contributes of this paper. I need this for my
Finishing Project so i need this ASAP please ( IN 1-2-3 HOURS
PLEASE !!!)
SPECIAL ARTICLES tole of Monetary Policy C Rangarajan What should be the objectives of monetary policy? Does the objective of price stability conflict with the goal of achieving...
1. When the government increases spending by issuing more bonds, it causes: a) nations currency to...
1. When the government increases spending by issuing more bonds, it causes: a) nations currency to appreciate b)exports increase c)interest rates decrease d)demand for loanable funds decrease e)decreases merchandise trade deficit 2. When the Fed decreases money supply to combat inflation, it cuases: a)the price of the U.S. dollar to decrease b) capital to flow out of the US c)an increase in the merchandise trade deficit d)an increase in private spending e) a decrease in the interest rates 3. Which...
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 21)...
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 21) 21) "Demand-pull inflation" refers to A) any inflation that is originally caused by a rightward shift of the AD curve but is maintained at a constant level by monetary validation. B) only the inflation that results from an expansionary monetary policy. C) any inflation that is originally caused by a rightward shift of the AD curve but is accelerating due to monetary validation. D)...
52. Studying alternative theories of how people form expectations is particularly relevant to monetary policy because A. if people fully expect inflation to occur, the effects of monetary policy are more widespread. monetary policy can only have real effects on the economy if people fully expect inflation. c. unexpected inflation cause prices to be flexible. d. the effects of expected inflation are completely different from the effects of unexpected inflation e expected inflation causes prices to become sticky. 53. Monetary...
2A) Aggregate supply shifts to the left when: A. input prices rise. B. producer subsidies are higher. C. inflation expectations are lower D. there is a decrease m burdensome regulations. B) Which of these fiscal policy measures will NOT increase aggregate supply? A. B. C. D. increased infrastructurespending reduced taxes on businesses investment tax credits increase in business regulation Aggregate Ouput C) ff there is a decrease in inputprices, the short-runageregate supply cuve will shift from SRAS to and theprice...
1. Is the Phillips curve a myth? Intertemporal tradeoff between inflation and unemployment After the World War II, empirical economists noticed that, in many advanced economies, as unemployment fell, inflation tended to rise, and vice versa. The inverse relationship between unemployment and Inflation, was depicted as the Phillips curve, after William Phillips of the London School of Economics. In the 1950s and 1960s, the Phillips curve convinced many policy makers that they could use the relationship to pick acceptable levels...
32. The credibility of the central bank: a. promotes long-run growth. b. is irrelevant for controlling inflation. c. is crucial for controlling inflation and stabilizing output d. promotes sensible fiscal policy. e. implies low interest rates. 33. You are the head of the central bank and you want to maintain 2 percent long-run inflation, using the quantity theory of money. If the real GDP growth is 4 percent and velocity is constant, you suggest a: a. 6 percent interest rate...
I need Summary of this Paper i dont need long summary i need
What methodology they used , what is the purpose of this paper and
some conclusions and contributes of this paper. I need this for my
Finishing Project so i need this ASAP please ( IN 1-2-3 HOURS
PLEASE !!!)
SPECIAL ARTICLES tole of Monetary Policy C Rangarajan What should be the objectives of monetary policy? Does the objective of price stability conflict with the goal of achieving...
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 21) 21) "Demand-pull inflation" refers to A) any inflation that is originally caused by a rightward shift of the AD curve but is maintained at a constant level by monetary validation. B) only the inflation that results from an expansionary monetary policy. C) any inflation that is originally caused by a rightward shift of the AD curve but is accelerating due to monetary validation. D)...
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