Q1. The Taylor rule is an instrument rule based on: A) the rate of growth of the monetary base using the quantity theory of money. B) the rate of inflation and the output gap. C) bringing expected inflation into line with a target rate.
Q2. When the Federal Reserve sells government securities on the open market, bank reserves are: A) increased, which increases the amount of money banks are able to lend, causing a decrease in the federal funds rate. B) decreased, which reduces the amount of money banks are able to lend, causing an increase in the federal funds rate. C) decreased, which reduces the amount of money banks are able to lend, causing a decrease in the federal funds rate.
Q3. Which of the following is an example of a central bank utilizing an inflation targeting rule to guide monetary policy? A) Setting the federal funds rate at a level that will cause the forecast inflation rate to equal the central bank’s goal inflation rate. B) Using the Taylor rule to set the target federal funds rate. C) Using open market operations to set a target federal funds rate based on the current performance of the economy.
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发表于 2009-1-15 16:49
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