Q1. A country is experiencing a core inflation rate of 7% during a recessionary period of real GDP growth. If the central bank has a single mandate to achieve price stability and uses inflation targeting with an acceptable range of zero to 4%, its monetary policy response is most likely to decrease: A) GDP growth in the short run. B) short-term interest rates. C) the foreign exchange value of the country’s currency.
Q2. If a bank needs to borrow funds from the Federal Reserve to fund a temporary shortage in reserves, it would borrow funds at the: A) federal funds rate. B) discount rate. C) prime rate.
Q3. If a country’s economy is growing at an unsustainably rapid rate and the central bank decreases its target inflation rate, the country’s: A) long-term rate of economic growth will increase. B) inflation rate is likely to increase. C) expected rate of inflation is likely to decline.
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发表于 2009-1-16 09:09
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