Question
ARE THE STATEMENTS TRUE, FALSE or UNCERTAIN 1.The Bank of Canada has both goal independence and instrument independence. 2.Open market operations lower the nominal interest
ARE THE STATEMENTS TRUE, FALSE or UNCERTAIN
1.The Bank of Canada has both goal independence and instrument independence.
2.Open market operations lower the nominal interest rate but not the real interest rate.
3.The recent fall in short-term nominal interest rates indicates that monetary policy is becoming easier.
4.In an all-currency economy (one with no bank deposits) the money supply and the monetary base are the same and the money multiplier is equal to 1.
5.An increase in the expected rate of inflation results in an increase in the money supply.
6.Helicopter money may work better than conventional monetary policy and quantitative easing.
7.There is credible evidence that central banks around the world have used monetary policies for the purpose of creating political business cycles.
8.Money demand shocks originate either in shocks to the level of real output or the nominal interest rate.
9.The money multiplier reflects the existence of a banking system.
10.Monetary policy can have a distortionary effect on asset prices.
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