Monetary authority simply do not have the real-time knowledge to measure and predict changes in demand for money nor can this knowledge ever be approximated even with hundreds of economist collecting data and refining models

True

False

Choose all of the following that, are destroyed without private property.

A. market prices

B. profit loss calculation

C. informational feedback loop

D. economy-wide coordination

Central bank models assume the economy has no financial system, therefore...

A. economic crisis originating in the financial system is impossible

B. they do not account for their own actions on the economy

C. economic growth is impossible

D. they cannot estimate the amount of money in the economy

Given the impossibility of measuring and predicting the demand for money discretionary Central banking will generate monetary disequilibrium as a regular matter of course as the money supplied by the central bank periodically fall short or exceeds money demanded by the public

True

False

Why does money play a crucial role in economic coordination, accounting, and planning?

A. It doesn't.

B. It is the measure of GDP.

C. It is one half of all exchanges.

D. It is the key to strategic planning.

Haphazard financial regulation is most likely to emerge

A. following financial crisis

B. when congress is in session

C. during normal financial times

D. when regulation is outdated or very old

Good decisions require...

A. perfect data

B. bad data

C. data

D. good data

Technical problems _______ by better models and data.

A. will be unchanged

B. may be changed

C. may be lessened

D. may be increased

Financial regulation as a result of financial crisis is likely to...

A. adjust the amount of monetary supply

B. predict the next crisis

C. over-emphasize combating the perceived causes of the most recent crisis.

D. better prevent future crisis

The need to adjust the money supply in accordance with changes in money demand represents a ______ and ________ knowledge problem for monetary authorities.

A. substantial; insurmountable

B. minor; insurmountable

C. minor; solvable

D. substantial; solvable