Reading 27: Monetary Policy LOS A习题精选 2010, including, between, border

honeycfa

LOS a: Discuss the goals of U.S. monetary policy and the Fed’s means for achieving the goals, including how the Fed operationalizes those goals.

The U.S. Federal Reserve bank defines price level stability as an inflation rate:

A) between 0 and 3%.

B) above 3%.

C) equal to 0%.

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Price level stability is defined as a stable inflation rate between 0 and 3%.

 

gaoflex

thank you.

zaestau

c

zaestau

c

honeycfa

Which of the following is least likely to be a goal of current U.S. monetary policy?

A) Maximum employment.

B) Moderate long-term interest rates.

C) Stable currency.

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U.S. monetary policy goals are maximum employment, stable prices, and moderate long-term interest rates.

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The sustainable growth rate of real GDP is most likely to be increased by:

A) an increase in government spending.

B) an increase in the propensity to consume by households.

C) the discovery of untapped oil fields.

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Sustainable growth in real GDP is defined as the growth rate in real GDP that is sustainable over the long term. The sustainable growth rate is positively affected by increases in the supply of natural resources and increases in the marginal propensity to save and invest. An increase in government spending does not increase an economy’s sustainable growth rate.