Question
42.if the Federal Reserve adheres strictly to the Taylor rule, it will decrease the target federal funds rate when the government runs an expansionary fiscal
42.if the Federal Reserve adheres strictly to the Taylor rule, it will
decrease the target federal funds rate when the government runs an expansionary fiscal policy.
lower the target federal funds rate when the economy starts to overheat.
increase the target federal funds rate when there is concern about inflation and lower it when there is concern about recessions.
keep the target federal funds rate constant, regardless of evolving economic conditions.
43.Which of these was NOT a cause of the 2007-2009 financial crisis?
Banks and other lenders lowered their quality standards for mortgage loans.
Low interest rates encouraged a housing bubble.
Congress enacted restrictive trade policies that failed to curb imports.
Investors and financial institutions bought assets that required an unsustainable rise in housing prices.
44.Which statement regarding the transparency of the Fed is TRUE?
Investors generally do not react strongly to the Fed's actions and therefore are indifferent about transparency.
The Fed's FOMC committee issues a "tilt" statement after each of its eight meetings per year.
Former Fed chair Alan Greenspan was against increasing the Fed's transparency.
The Fed has become less transparent over the past few decades.
45.The Federal Reserve has been criticized for taking too long to recognize that the nation was facing a financial crisis.
False
True
47.The Federal Reserve did a good job of keeping the economy near full employment with stable prices for most of Alan Greenspan's tenure, but it may have been responsible for encouraging the housing bubble that plagued Ben Bernanke.
True
False
48.Monetarists believe that any change in the money supply will change prices, output, or both in the short run.
True
False
53.One of the causes of the 2007-2009 financial crisis was a lack of faith in the ability of the U.S. Treasury to pay on government bonds.
True
False
54.Which statement refers to a characteristic of the quantity theory of money?
It assumes that prices and interest rates are sticky.
It is focused on the short run.
It assumes money is used for both transactions and savings.
It is a product of the classical school of economics.
ONLY NEED ANSWERS, it's fine without explain. Thank you so much!!
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