Reading 27: Monetary Policy-LOS a 习题精选 2011, including, center, policy, style

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Session 6: Economics: Monetary and Fiscal Economics
Reading 27: Monetary Policy

LOS a: Discuss the goals of U.S. monetary policy and the Federal Reserve's (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%.

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

A) the discovery of untapped oil fields.

B) an increase in government spending.

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

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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.

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

A) Stable currency.

B) Maximum employment.

C) Moderate long-term interest rates.

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

gaoflex

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luqian55

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