The low interest rate policies of the Federal Reserve during 2002-2004,
a. indicated that monetary policy was highly restrictive.
b. increased the demand for housing, placing upward pressure on housing prices.
c. made home mortgages less attractive, weakening the demand for housing.
d. was on target with the federal funds rate proscribed by the Taylor rule.
B
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The view that the choices consumers face should be limited for their own good is known as ________
A) Keynesian theory B) institutionalist theory C) rational adaptations D) libertarian paternalism
According to the Monetarist view, the impact of expansionary monetary policy will be:
a. the same in the long run as in the short run. b. the same regardless of whether the effects of the policy are anticipated or unanticipated. c. a higher price level (inflation). d. a decrease in short-run prices and an increase in long-run prices.