1. Why would it be problematic for a central bank to have a primary goal of maximizing economic growth?
2. "Since financial crises can impart severe damage to the economy, a central bank's primary goal should be to ensure stability in financial markets." Is this statement true, false, or uncertain? Explain.
3. How can bank behavior and the central bank behavior cause money supply growth to be procyclical (rising during booms and falling during recessions)?