Question
Need help with the following questions 1. during the 1980s and 1990s, the federal reserve monetary policy primarily focused on A. keeping short term interest
Need help with the following questions
1. during the 1980s and 1990s, the federal reserve monetary policy primarily focused on
A. keeping short term interest rates low in order to stimulate real output and economic growth.
B. A variety of factors, such as unemployment and real GDP, resulted in variable inflation rates throughout this period
C. keeping inflation low and the general price level relatively stable
D. Monetary expansion in order to reduce unemployment.
2. An appreciation in the value of the dollar would
A. make U.S. goods less expensive to foreigners
B. encourage U.S. consumers to buy more foreign goods
C. increase the number of dollars that could be purchased with a Mexican peso
D. discourage US consumers from traveling abroad
3. Which of the following is a lesson that can be learned from the monetary policy during the Great Depression?
A. Monetary policy should be changed frequently in response to economic fluctuations
B. Periods of substantial monetary contraction will undermine economic growth and lead to recession
C. Low interest rates will direct an economy toawrds recovery
D. Monetary policy should focus on variables such as output and unemployment
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