Which of the following combinations would unambiguously decrease the supply of money?
a. The Fed pays a lower interest rate on bank reserves and increases the required reserve ratio
b. The Fed conducts an open market purchase of government securities and raises the discount rate.
c. The Fed pays a higher interest rate on bank reserves and conducts an open market purchase of government securities.
d. None of the above would unambiguously decrease the supply of money.
a
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Legitimate power is the same as
a. laissez faire leadership b. traditional leadership c. peer pressure d. expert leadership
Which of the following statements about inflation targeting is true?
A) Inflation targeting would not reduce the flexibility of monetary policy to address other policy goals. B) Inflation targeting by the central banks in other countries has not typically lowered inflation. C) Inflation targeting would make it easier for households and firms to form accurate expectations of future inflation, improving their planning and the efficiency of the economy. D) Inflation targeting would not allow the central bank the flexibility to take action against a severe recession.