Which of the following are monetary policy goals?
I. maintain high interest rates
II. keep unemployment rates low
III. reduce the size of the banking sector
IV. prevent high rates of inflation
A) I, II, III, and IV
B) I, II, and III
C) II, III, and IV
D) II and IV
Ans: D) II and IV
Economics
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In its current execution of monetary policy, the Fed does not usually have a specific _____________ target, but rather it tries to target a specific ________________
A) money supply; federal funds rate B) federal funds rate; money supply C) money supply; discount rate D) required reserves ratio; discount rate
Economics
If there is a decrease in disposable income in an economy, then:
A. Both the APC and the APS rise B. The APC rises and the APS falls C. The APC falls and the APS rises D. Both the APC and the APS fall
Economics